BBC and Channel 4 in talks to buy Virgin Media's UKTV stake

Media Boy UK · 22-01-2009, 17:47

The BBC and Channel 4 have joined forces for negotiations to buy Virgin Media out of UKTV, which owns channels including Gold and Dave, MediaGuardian.co.uk can reveal.

Talks with Virgin Media over its 50% UKTV stake form part of what are understood to be wider discussions between the BBC and Channel 4 about creating a "UK content company".

The talks could see the commercial broadcaster join BBC Worldwide in the UKTV business by buying out Virgin Media's stake.

http://www.guardian.co.uk/media/2009...l4-virgin-uktv

Info from Media Guardian online.

TheOne · 22-01-2009, 18:11

Personally, i hardly ever watch any of the UKTV owned channels like Dave, Gold etc etc etc

If by VM selling their stake means a nice pot of money..then hopefully they'll use it and invest in some good quality programming

What do other people think ?

Toto · 22-01-2009, 19:05

450M won't buy a great deal of quality programming, but that kind of cash could be very useful to VM's debt balance sheet.

**Chris** · 22-01-2009, 19:30

Prior to the merger, when this stake was owned by Telewest, senior NTL executives were known to want to get shot of them. It was a sticking point in the merger talks for a while, IIRC. I think the difficulty in getting a reasonable price for them at the time is the only reason they are still part of VM now.

LondonRoad · 22-01-2009, 21:51

I'd be quite happy for VM to concentrate on network infrastructure than providing content. Even their wholly owned channels could be sold as far as I'm concerned. I do enjoy some stuff on Virgin1 and she who must be obeyed watches some Living stuff but that could be enjoyed just as easily under another umbrella.

Arthurgray50@blu · 22-01-2009, 22:11

I doubt very much if VM make any money, they would invest it back into the business, they would pay off there massive debt they owe.

Matth · 22-01-2009, 22:44

To keep things balanced, VM really need to have some content that is under their umbrella, to keep a parallel negotiating position in comparison with Sky.

All friends now, but keeping the powder dry is a wise move, if VM buy in every bit of content, then they will be at the mercy of every content supplier.

broadbandking · 22-01-2009, 23:44

VM have but hold on there debt till 2012 so the money wont go on the debt, I would like to see this as we dnt have a great British TV company yet.

**Chris** · 23-01-2009, 09:11

Quote:

Originally Posted by broadbandking

we dnt have a great British TV company yet.

Sorry ... what?

Stuart · 23-01-2009, 09:43

Quote:

Originally Posted by broadbandking

we dnt have a great British TV company yet.

I can think of plenty.. One licence fee funded, the others not..

Ignitionnet · 23-01-2009, 17:34

Quote:

Originally Posted by broadbandking

VM have but hold on there debt till 2012 so the money wont go on the debt, I would like to see this as we dnt have a great British TV company yet.

Still pay interest on it, paying it off early means less interest.

demented · 23-01-2009, 18:56

Seems like a really bad idea to me, selling off content.

m419 · 24-01-2009, 17:44

I dont understand where all this debt is coming from, Cable and Wireless Communications which was the Cable franchise arm of the Cable and Wireless group and a few american cable groups was owned by Videotron,Bell Atlantic(Nynex/Bell) and Cable and Wireless but traded as Cable and Wireless, they invested on the completion of the cable network and network expansion also the cost of building there own telephone network between 1990 and 1994, so thats where the debt came from, but why has NTL/Virgin acquired such debt, wouldn't have been better if NTL had taken over most of the assets from Cable and Wireless Comms and then place the rest of it into administration???

I tell you what would help Virgin Media reduce its debt, if the Virgin Group removed or reduced the lease of using the Virgin Brand name! that must cost a fortune, although Hutchison Telecoms was paying France Telecom a similar cost for using the Orange brand in Austrailia,but no more,they use there own 3 brand now!Is Orange brand really that good???

Its always run through my mind, but wonder what would happen if Virgin Media quit broadcasting Living,Challenge,Bravo,Virgin 1, all the UKTV channels and also made agreements with Discovery networks to make Discovery channels exclusive to Virgin and Cable TV??? There would be nothing left on Sky! I'm sure that would draw in the customers. If it lasted a year, it would definately drag in the customers, although there will be advertising losses.

Virgin TV needs more exclusive channels! Apart from that, Sky is crap compared to what Virgin offers, yes, Sky has more HD this that and the other, but no more than 1 Million out of 15 to 20 Million households actually need it! They realise that they have reached the limit to the amount of customers that they can draw in, so Sky has now quit advertising its HD services so agressively. Now they are talking about 3D TV, who the hell actually needs that!

Furthermore, Virgin Media has much ability to migrate to next generation technology and products because of its fibre optic infrastructure, they are even introducing a new V+ box, Sky wont be able to offer these because they have to use BT's copper cable network or through the ugly dishes!

Sky have no TV on demand,Less pay-per-view movies,dodgy set top boxes and no adsl broadband at my address! So really no point even thinking about joining them!

Arthurgray50@blu · 24-01-2009, 19:23

My own personnel feeling is that, we need a major company that will take on Sky, and sorry but VM isn't that company, they are far too slow in bringing new channels into the network, so therfore if VM sold certain channels to the BBC and C4, what will they do - nothing.

VM came in and gave all this clout, of what they will do, and they have done nothing, lets have another cable company come in and look after the customer.

m419 · 24-01-2009, 21:23

What you mean like Videotron? They are still in Canada and they seem as stubborn as NTL and Telewest! I remember back in 1996/7 they wouldn't put UK Gold on the basic package, UKTV planned on stopping all there channels.

Then there is Tele2 in sweden, they still sell Analogue Cable as seen on there website! So they arent the right cable company to take over!

Then theres Comcast which built some franchises here in the UK, they have more rules and regulations than Alcatraz on there internet speeds!

Then theres France Telecom,who own Orange but who are also going bankrupt and are too stubborn to sell on Orange!

So theres one left..........Cable and Wireless!

Perfect! They will take on BT as well as a merged Virgin Media/Cable and Wireless company creates 2nd largest telecoms provider in the UK!

But when you say Virgin TV takes longer to add channels to the line up, that means they arent worth having! Maybe that new channel from Discovery seems worth having but the rest arent!

Red TV,BEN,Flaunt,Bliss,Bedroom TV,Bubble Hits,Performance Channel,ITV+2,Channel M(Outside North West England),Hollywood TV,Business Channel and all those dreadful shopping channels just take up too much bandwith! And all of those have very low viewing statistics which is why Virgin wont add them.

Apart from that, the content on Flaunt,Bliss and Bubble Hits can all be found on-demand through Music on Demand which is even better.

Furthermore, I think Virgin Media made a mistake in adding Sky Real Lives 1 and , they just show repeats of Airline all day long which have already been repeated on ITV2!!!!