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Virgin UKTV Discovery Communications

Discovery points finger at Virgin after backing out of UKTV purchase

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By The Drum Team, Editorial

April 18, 2011 | 2 min read

A blame game has erupted over the stalled purchase of a 50% stake in UKTV, a pay-TV operator, by Discovery Networks.

The American broadcaster accuses Virgin Media of being too “inflexible” in its negotiating stance to offload its stake.

Valued at anywhere between £250 and £350m the stake could see Discovery become a joint venture partner with BBC Worldwide on the channel.

Discovery’s Mark Hollinger said: “Virgin Media wanted a nice clean buyer. They didn't want anyone wanting to change the deal or the structure.”

This intransigence has killed the deal as far as Hollinger is concerned: “It is over in the sense that that we have not talked about Virgin Media and the BBC for months and months. There is nothing going on at the moment.”

Virgin is currently engaged in stop- start negotiations with rival US broadcaster the Scripps Network, over control of its stake.

Discovery has been a commercial partner with the BBC since 1997, collaborating on a number of hit shows including Planet earth and Walking with Dinosaurs.

Virgin UKTV Discovery Communications

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