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Desmond sells Channel 5 to American broadcaster Viacom for £450 million

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By Noel Young, Correspondent

May 7, 2014 | 3 min read

Britain's Channel Five has been taken over by the American broadcaster Viacom for £450m.

Richard Desmond: Big profit

MTV owner Viacom has agreed to buy the channel from Richard Desmond's Northern & Shell, the Mail Online reported.

The deal is a big profit on the £103.5m Desmond paid for the broadcaster in 2010, but it is well short short of the £700 million price he had put on the channel.

Channel 5's best-known programmes are Big Brother and Neighbours. Northern & Shell said the deal was subject to regulatory approval.

Viacom chief executive Philippe Daumann said: "The acquisition of Channel 5 accelerates Viacom's strategy in the UK, one of the world's most important and valuable media markets.

Channel 5 was launched in 1997. Under Desmond it revived Big Brother after it was ditched by Channel 4.

The broadcaster's fortunes have been transformed since the tycoon, who also owns the Daily Express and Daily Star newspapers, bought it four years ago.

Viacom, which broadcasts MTV in the US said 42 million people view Channel Five every month making it "very attractive."

This is the first time a US broadcaster has taken control of one of the UK's five free-to-air channels, said the Mail.

New owner Viacom is also behind children's channel Nickelodeon and Comedy Central.

Northern & Shell finance director Rob Sanderson said: "We are pleased to have agreed the sale of Channel 5 to Viacom.

"Since our acquisition of Channel 5 in 2010, the financial and operating performance of the business has been transformed and the combination of Channel 5 with Viacom's global resources, technology and expertise offers exciting opportunities for the channel's future."

"Viacom said its acquisition brought it the only commercial public service broadcaster to grow viewer share consistently in recent years. It said Channel 5's programmes were viewed by 42 million people every month.

Dauman said: "Channel 5's momentum is indisputable, with impactful programming, increasing popularity and a growing digital platform.

"Viacom's global resources, technology and expertise will help Channel 5 develop even more compelling programming and provide content to consumers in exciting new ways.'In addition, we will introduce our popular content to new UK audiences and create a comprehensive offering for our commercial partners on-air and online."

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