Scripps Networks Interactive said Monday it will shell out £239 million (approx. $391M US) for Virgin Media’s interest in its UKTV partnership and cover another £100 million in preferred stock and debt. BBC Worldwide remains owner of the other half of UKTV. The deal will have to go through normal regulatory channels before approved.
“UKTV is a significant opportunity for Scripps Networks Interactive to participate in a thriving multi-channel, dual revenue stream media business in one of the world’s largest television markets," said Kenneth W. Lowe, chairman, president and chief executive officer of Scripps Networks Interactive. “Making a solid investment in UKTV and entering into a strong partnership with BBC Worldwide reinforces our core international strategy which we believe will create significant long-term value for our shareholders."
Scripps and BBC Worldwide are negotiating a deal that would allow BBC to increase its share of the company from 50 to 60 percent, through a combination of cash and a package of digital rights.
Virgin Media and BBC Worldwide formed in 1997, attracting 36 million viewers a month who enjoy watching UKTV’s assortment of 10 lifestyle, entertainment and “non-fiction" channels. They include Home, Good Food, Dave and Watch.
“The launch of UKTV in 1997 created a new secondary platform for content from the BBC and U.K. independents that has delivered great value back to all stakeholders," said John Smith, chief executive, BBC Worldwide, said. “We thank Virgin Media for the part it has played in developing the business into one of the most successful pay TV companies in the U.K."
“This will allow us to continue to focus on providing a transformative experience for our customers by developing our core strategic strength – the U.K.’s leading digital network – alongside our leading entertainment services," said Neil Berkett, Virgin Media’s chief executive officer.
