BBC Worldwide studies Virgin Media TV purchase

BBC Worldwide has approached a number of private equity firms with a view to making a joint bid for Virgin Media Television. Such a bid would unite the UKTV group of channels, in which both companies hold a 50% share, with Virgin Media’s brands Living, Bravo, Challenge and Virgin 1.

The Sunday Telegraph says talks have begun with firms that include Cinven, Kohlberg Kravis Roberts and Providence Equity Partners.

Virgin Media has instructed Goldman Sachs to look at the possibilities for its television division and a sale is widely seen as the most likely conclusion. Investment bank Credit Suisse has also been brought in to advise on bringing in a private equity business. The company is valued at £800 million.

The sale comes at a time when the US-quoted cablenet is looking to reduce its exposure to the credit markets.

Last Week, Shane O’Neill, chief strategy officer at Liberty Global and head of its European channels group Chellomedia, indicated the company’s interest in examining Virgin Media Television should it be placed on the market.