BBC Trust Talks Floating BBC Worldwide Arm
BBC Trust executives are rumored to have held tentative talks with City banks Credit Suisse and Goldman Sachs over floating part of BBC Worldwide, its commercial arm. A spokesman for the company, though, said that there aren’t any plans to sell the commercial arm at all, and they aren’t talking with investment banks either.
It was first revealed in September by BBC director general Mark Thompson that a partial privatization of BBC Worldwide was an option they were considering as part of their strategic review of the company’s activities. He added that they should look at if total ownership of the arm is essential in moving forward.
Then on Tuesday, the corporation reported that the boundaries governing the markets that Worldwide operates in need to be more defined. BBC Trust chairman Sir Michael Lyons noted, along with a review of the arm’s activities, that they have an open mind on how Worldwide should be constituted, while it is possible to imagine it being separated from the company’s core public service broadcasting operation. He added that the commercial arm is successful, bringing great financial benefits for licence fee payers, but both the trust and the executive see that the boundaries of activity should be more clear.
This report signaled a change in ownership structure, which could lead to a partial sale or flotation of the arm worth up to £2 billion. Some of Worldwide’s activities are controversial, and critics celebrated when the corporation grew in size and power with its acquisition of Lonely Planet. Although the arm’s activities will be curbed, they won’t affect this deal, as any changes can’t be imposed retrospectively.
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