BSkyB and Discovery Communications reportedly set to announce acquisition of Channel 5
BSkyB and US-based Discovery Communications are reportedly set to announce a £350m acquisition of Channel 5.
Sale: Richard Desmond may be about to offload Channel 5
Channel 5 owner Richard Desmond began a hunt at the beginning of the year for a buyer of the business, which he bought for £103m three years ago from Luxembourg-based RTL. His first move was to sack the majority of the board and cut a number of jobs.
According to Broadcast Now, BSkyB and Discover Communications - which owns brands such as the Discovery Channel and Animal Planet - have struck a deal to acquire the channel.
Despite turning the business around and bringing it into the profit, the £350m figure would represent only half of what Desmond – whose Northern & Shell business owns the Daily Express newspapers, Daily Star newspapers and OK magazine as well as adult TV channels like Television X – was reportedly expecting.
When Channel 5 went on the market, analysts speculated that a battle may begin between BSkyB and challenger BT Sport to buy the channel, although it was unclear what competition rules may hinder BSkyB in any possible deal.
The Drum was awaiting a response from Northern & Shell at the time of publication.
BSkyB declined to comment but did not deny the reports.
Update: Channel 5 has denied reports that a deal has been done