BSkyB buy Virgin Television
Sky owners, BSkyB, has announced that it will be purchasing Virgin Media’s television channels for £160 million. The satellite broadcaster will now add Bravo, Bravo 2, Challenge, Challenge Jackpot, Living, Livingit and Virgin 1 to its portfolio. Sky has announced that it will be renaming Virgin 1 at a future date.
Jeremy Darroch, BSkyB’s chief executive, said that the VMtv channels would compliment the channels already owned by the broadcaster. He added that the investment in the channels would deliver a number of strategic as well as financial benefits.
As well as the decision to sell the channels to Sky, Virgin has also entered into a long-term agreement which will mean that Virgin Media will continue to distribute Sky channels, such as Sky Arts and Sky1. Virgin Media also now has the option of carrying high definition channels such as Sky Movies HD, HD1 and Sky Sports.
Neil Berkett, Virgin Media chief, said that the sale of the television channels together with the updated commercial agreements would allow the company to focus on delivering the best content to its customers through its super-fast connectivity. The sale off the channels has also added substantial value to Virgin Media, according to Mr Berkett.
The deal for the VMtv channels has been in the works for more than a year. From January next year BSkyB will take over responsibility for advertising the channels. Once the deal is completed, Virgin will receive £105 million, with the remainder being handed over once the regulatory processes have been completed.