Magazines excluded in BBC Worldwide tie-up

By JON REES, MAIL ON SUNDAY FINANCIAL CORRESPONDENT
Updated:

BBC Worldwide's proposed tie-up with Channel 4 is expected to include virtually all of its UK business that is not BBC-branded, except its magazine division.

That would probably include Worldwide's DVD arm, as well as the UKTV business, which BBC Worldwide owns as a joint venture with Virgin Media. BBC Worldwide and Channel 4 are understood to be looking at buying Virgin Media's stake in UKTV.

The BBC's magazine arm, which publishes the Radio Times, is not expected to be included, said BBC sources.

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The BBC's commercial arm and Channel 4 have been discussing creating a joint venture for two months. The aim is to preserve Channel 4's future in the face of an expected advertising shortfall of £150 million by 2012.

Any such deal would exclude BBC Worldwide's overseas interests, which include BBCbranded channels and the sales of BBC programmes, but would include all of Channel 4's channels except its main C4 channel.

A deal is likely to be completed within two months though it is dependent on the approval of the BBC Trust.

BBC Worldwide sells its DVDs through 2 entertain, the joint venture with Woolworths. It is continuing to negotiate to buy the 40 per cent of 2 entertain it does not own.

The BBC may exercise its right to demand that Woolworths' share of 2 entertain be sold to it.

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