The UK-based cable company Virgin Media has employed the investment bank UBS to give advice on the proposed sale of its content division, which has stakes in a couple of channels including Living and Bravo, and could be worth around £500 million.
According to the reports, the move comes as a confirmation to the speculations that the company has eventually put its content business up for sale, after top-level management of the company met last week to explore various fund-raising options.
As expected, the formal process will kick start after the company knows the results of the Government’s favoured funding option for Channel 4.
The assets of the content business of Virgin Media includes 50 percent stakes in the UKTV, a joint venture with the BBC Worldwide, on which the latter enjoys the first right to refusal, and the channels covered by the UKTV include Yesterday, Alibi, Dave, and Gold.
The news comes after the chief exec for Virgin Media’s content arm, Malcolm Wall, declared that he would be leaving the firm.
The sale of the content business, which is triggered by the company’s £6 billion debt, would mark an end to the company’s 25-years long efforts to become one of the big names in the content delivery domains.
Go To Page 2 for our comments and more related links
We wrote on that possibility at the end of last month. And our comments were "The financial problems Virgin Media is currently facing act as a stark reminder that even if its broadband arm is still capturing new customers, the cable company is not out of the woods yet. Virgin Media has huge debts that will become costlier to service over time and it needs to act well before it is too late."
(Rapid TV News)
(Broadband TV News)