Larry-G
15-08-11, 10:43
US company Scripps Networks buys Virgin Media's 50% stake in pay TV operator UKTV
Virgin Media has sold its 50% stake in pay TV operator UKTV to US TV company Scripps Networks in a deal worth £339m.
Scripps – which owns US TV brands including The Cooking Channel and The DIY Network – has paid £239m in cash, and will pay out about £100m to acquire the outstanding preferred stock and debt owed by UKTV to Virgin Media.
Virgin Media had valued it stake in UKTV, the pay-TV business formed in 1997 as a 50-50 joint venture with BBC Worldwide, at about £350m including outstanding loans of more than £100m.
"UKTV is a significant opportunity for Scripps Networks Interactive to participate in a thriving multi-channel, dual revenue stream media business in one of the world's largest television markets," said Kenneth Lowe, the chairman, president and chief executive of SNI.
"Making a solid investment in UKTV and entering into a strong partnership with BBC Worldwide reinforces our core international strategy which we believe will create significant long-term value for our shareholders."
Following the completion of the deal, which requires regulatory approval in the Republic of Ireland and Jersey, SNI is negotiating a deal to give BBC Worldwide the option of increasing its stake to a maximum of 60%, by using a combination of cash and an unspecified "package of digital rights" for UKTV.
UKTV is home to a portfolio of 10 pay-TV channels including Gold, Dave, Home, Watch, Yesterday and Good Food.
"The new agreement we are developing will bring benefits to UKTV's audiences in the way they can consume content and will help to sustain UKTV's track record of growth," said John Smith, the chief executive of BBC Worldwide.
"It will create the opportunity to drive further value from digital rights on behalf of our stakeholders, particularly our shareholder, the BBC."
Scripps Networks has been on a major expansion drive internationally, taking stakes in numerous channels.
In 2009, Scripps launched The Food Network in the UK and Europe, home to shows including Nigella Express and Great British Menu, in partnership with Chello Zone.
http://www.guardian.co.uk/media/2011/aug/15/virgin-sells-uktv-stake-to-scripps-networks
Virgin Media has sold its 50% stake in pay TV operator UKTV to US TV company Scripps Networks in a deal worth £339m.
Scripps – which owns US TV brands including The Cooking Channel and The DIY Network – has paid £239m in cash, and will pay out about £100m to acquire the outstanding preferred stock and debt owed by UKTV to Virgin Media.
Virgin Media had valued it stake in UKTV, the pay-TV business formed in 1997 as a 50-50 joint venture with BBC Worldwide, at about £350m including outstanding loans of more than £100m.
"UKTV is a significant opportunity for Scripps Networks Interactive to participate in a thriving multi-channel, dual revenue stream media business in one of the world's largest television markets," said Kenneth Lowe, the chairman, president and chief executive of SNI.
"Making a solid investment in UKTV and entering into a strong partnership with BBC Worldwide reinforces our core international strategy which we believe will create significant long-term value for our shareholders."
Following the completion of the deal, which requires regulatory approval in the Republic of Ireland and Jersey, SNI is negotiating a deal to give BBC Worldwide the option of increasing its stake to a maximum of 60%, by using a combination of cash and an unspecified "package of digital rights" for UKTV.
UKTV is home to a portfolio of 10 pay-TV channels including Gold, Dave, Home, Watch, Yesterday and Good Food.
"The new agreement we are developing will bring benefits to UKTV's audiences in the way they can consume content and will help to sustain UKTV's track record of growth," said John Smith, the chief executive of BBC Worldwide.
"It will create the opportunity to drive further value from digital rights on behalf of our stakeholders, particularly our shareholder, the BBC."
Scripps Networks has been on a major expansion drive internationally, taking stakes in numerous channels.
In 2009, Scripps launched The Food Network in the UK and Europe, home to shows including Nigella Express and Great British Menu, in partnership with Chello Zone.
http://www.guardian.co.uk/media/2011/aug/15/virgin-sells-uktv-stake-to-scripps-networks