LONDON (Brand Republic) – Chris Smith, the UK’s culture, media & sport secretary, has cleared the way for public broadcaster the BBC to merge its production facilities, BBC Resources, with those of Granada Media in a money-saving deal.
The new venture, 3sixtymedia, will be 80% owned by Granada and is the first joint venture of its kind between the BBC and an ITV company.
It will provide BBC Northwest and the Manchester-based Granada with shared studio space, editing facilities and graphic design services.
The company also plans to profit by offering its services commercially to other broadcasters.
The deal was first announced in July after the government ordered the BBC to find £1.1bn for programming in return for being awarded a licence fee increase. The corporation undertook a restructuring programme involving the loss of 1,100 jobs.
At the time of the announcement, BBC Resources anticipated around 200 job losses. Granada Media expects job cuts to be minimal.