BBC Worldwide owns 10 channels including UKTV stations, BBC America, and 26 magazines. Last year it had revenues of £657m and generated £141m profit, which was ploughed back into the BBC.
The corporation is understood to be considering a possible break-up of the company, which also owns merchandising operations and overseas programme sales, rather than an outright sale. The deal would be timed to coincide with a government study of BBC funding, which would be crucial to its Charter Renewal.
In an interview today, BBC director-general Mark Thompson suggested that a review of its money-making arm would lead to a restructuring rather than a massive disposal. "I never either suggested or hinted a wholesale sale is a likely outcome... my test is what will deliver most value in the long term."
Flextech, the programming arm of the Telewest Group, has also been invited to join the discussions because it owns a 50% stake in the 10 UKTV digital channels, which include UK Style, UK History and UK Documentary. The BBC also has a factual programming deal with Discovery Communications in the US and it is expected to attend to take part in any discussions.
According to reports earlier this year, the departing chief executive of BBC Worldwide Rupert Gavin has been approaching private backers to discuss a management buyout of the commercial arm or parts of it.
This is not the first time the BBC has discussed the sale of BBC Worlwide. Three years ago, the then BBC chairman Gavyn Davies and director-general Greg Dyke commissioned a similar strategic review.
On that occasion, Davies advocated selling off 49% of the business, but Worldwide expressed concern about the potential loss of control over valuable BBC brands and pointed out that the division's profits effectively subsidise TV licence-fee payers to the tune of £6 a person. The conclusion was that the interests of licence-fee payers were best served by retaining ownership of Worldwide.
US companies Time Warner and Disney confirmed they have been approached by the BBC. German media group Bertelsmann declined to comment.
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