Fellow US companies Saban Capital, the investment company run by multi-billionaire "Power Rangers" owner Haim Saban, Discovery Communications and Scripps Networks have also submitted bids in the first bidding round for the Northern & Shell-owned broadcaster.
Discovery had been in discussions with BSkyB to table a joint bid, with BSkyB taking over Channel 5’s advertising sales operation, the Financial Times reported last week.
None of the companies are currently commenting on the sale, which has also attracted bids from a number of unnamed European media firms.
Richard Desmond's Northern & Shell put the broadcaster, acquired for £103.5m in 2010, up for sale in January 2014. A request for bids was sent out by bankers Barclays in February 2014, after which it emerged that Desmond and key C5 executives Paul Ashford and Stanley Myerson exited the board at the end of 2013, Channel 5 owner Richard Desmond is seeking a price of about £700 million ($1.17 billion) for the channel.
The sale process will now heat up as the US businesses fight to secure the public service broadcaster.
Viacom's kids network Nickelodeon could benefit from tapping into C5's Milkshake! and Shake! programming blocks, which currently airs a raft of popular Nick Jr. UK programming, including "Peppa Pig", "Ben and Holly's Little Kingdom", and "Tickety Toc".
Meanwhile, Discovery has been expanding its channel distribution strategy in recent months and is keen to expand its free-to-air presence. C5's factual-based schedule fits with the bidder's programming and the channel already airs a number of Discovery shows such as Deadliest Catch.
While Scripps Network, which owns 50% of UKTV, Food Network and Travel Channel, already operates a slew of free-to-air channels in the UK, a deal with C5 would significantly increase its profile.
Saban Capital has long been interested in the UK broadcasting market and previously considered a bid for ITV. Run by the hugely influential political power-broker Saban, the investment division owns US Spanish language broadcaster Univision as well as stakes in Indonesian pay-TV network MNC Sky Vision and Asian pay-TV operator Celestial Tiger Entertainment.
Elie Dekel, president of Saban Brands, the division that owns Power Rangers and Paul Frank, told Broadcast in September that the firm was focusing on UK IP, in line with its parent company’s strategy.
Channel 5 declined to comment.
From Broadcast:
Discovery and Viacom bid for C5Also, from THR:
Discovery, MTV-owner Viacom and UKTV-backer Scripps Network are among the companies battling to acquire Channel 5.
Saban Capital, the investment company run by multi-billionaire Power Rangers owner Haim Saban, has also submitted a bid for the Northern & Shell-owned broadcaster.
The Financial Times reports that these four US companies were among the bidders for the free-to-air channel, along with a number of unnamed European media firms.
Richard Desmond’s Northern & Shell put the broadcaster, acquired for £103.5m in 2010, up for sale in January. A request for bids was sent out by bankers Barclays last month, after which it emerged that Desmond and key C5 executives Paul Ashford and Stanley Myerson exited the board at the end of last year, paving the way for a sale.
The sale process will now heat up as the US businesses fight to secure the public service broadcaster.
Discovery has been expanding its channel distribution strategy in recent months and is keen to beef up its free-to-air presence. C5’s factual-based schedule fits with the bidder’s programming and the channel already airs a number of Discovery shows such as Deadliest Catch.
Meanwhile, Viacom’s kids network Nickelodeon could benefit from tapping into C5 kids brand Milkshake.
While Scripps Network, which owns 50% of UKTV, Food Network and Travel Channel, already operates a slew of free-to-air channels in the UK, a deal with C5 would significantly increase its profile.
Saban Capital has long been interested in the UK broadcasting market and previously considered a bid for ITV. Run by the hugely influential political power-broker Saban, the investment division owns US Spanish language broadcaster Univision as well as stakes in Indonesian pay-TV network MNC Sky Vision and Asian pay-TV operator Celestial Tiger Entertainment.
Elie Dekel, president of Saban Brands, the division that owns Power Rangers and Paul Frank, told Broadcast in September that the firm was focusing on UK IP, in line with its parent company’s strategy.
Channel 5 declined to comment.
U.K.'s Channel 5 Draws First-Round Bids From Discovery, Viacom, OthersAlso, from Variety:
Haim Saban's Saban Capital is also among those in the running for the British network that airs such shows as "Big Brother."
LONDON – First-round bids for British broadcaster Channel 5, which were due late on Thursday, came from several bidders, including U.S. cable networks giants Viacom and Discovery Communications, according to sources.
It wasn't clear on Friday though if U.K. pay TV giant BSkyB, in which Rupert Murdoch's 21st Century Fox owns a 39 percent stake, was part of the Discovery bid, had submitted its own offer or wasn't in the running at all. The Financial Times had reported that Discovery and BSkyB recently discussed a joint approach.
Spokespeople for Channel 5, Discovery and BSkyB declined to comment.
Cable networks powerhouse Viacom, the owner of the likes of MTV, Nickelodeon and Comedy Central, also handed in a first-round offer for Channel 5, sources said. The company could look to further expand its U.K. operations by adding a broadcast network, one industry observer suggested. A spokesman declined comment.
Discovery has also added free-to-air networks as part of its growth push in Europe.
Meanwhile, Haim Saban's Saban Capital was also among the companies that made an initial bid, one source said. A banker told THR that Saban would likely need a strong partner though. One observer said Saban could join another bidder at a later stage. A spokeswoman for Saban wasn't available for comment.
The Financial Times late Friday also mentioned Scripps Networks as having submitted opening bids for Channel 5.
Financial details weren't immediately clear. It also wasn't clear which other companies had made first-round bids.
Suitors that the banking team of current Channel 5 owner, entrepreneur Richard Desmond's Northern & Shell, had been trying to attract include John Malone's Liberty Global, U.K. telecom giant BT, Vodaphone and NBCUniversal,whose oner Comcast is currently busy with a proposed deal to acquire Time Warner Cable.
Meanwhile, U.K. TV networks giant ITV on Wednesday ruled itself out of the bidding process, with CEO Adam Crozier saying the company wouldn't go after Channel 5.
The timetable for the auction beyond the first round of bids, designed to gauge the amount of interest, isn't clear.
Desmond acquired Channel 5 in 2010 for $171 million from European TV giant RTL Group, which is controlled by Bertelsmann.
Sources said that Desmond is now seeking $1.15 billion-plus (£700 million) for the network as Channel 5 has recently at times outperformed rival Channel 4. But at least one analyst said the company was unlikely to attract initial bids close to that level.
Channel 5 airs such shows as the local version of Big Brother.
Amid recent deals to expand in Europe via acquisitions of SBS in Scandinavia and a stake in pan-European sports network Eurosport, Discovery is widely seen here as a strong contender for Channel 5.
"Discovery is a logical buyer because the focus of management has been abroad and they can leverage their sales force," said Macquarie Securities analyst Amy Yong earlier this week.
INTERNATIONAL
Viacom, Discovery, Scripps, Saban Bid for U.K.’s Channel 5: Report
Channel 5 owner Richard Desmond is seeking bids of about $1.17 billion
LONDON — Viacom, Discovery Communications, Saban Capital and Scripps Networks are among the bidders to buy U.K. free-TV network Channel 5, according to the Financial Times, which cited a source familiar with the process.
Discovery had been in discussions with BSkyB to table a joint bid, with BSkyB taking over Channel 5’s advertising sales operation, the Financial Times reported last week.
None of the companies would comment on the sale, which has also attracted bids from European buyers. The sale is being managed by Barclays.
U.K. commercial broadcaster ITV, one of Channel 5’s main rivals, ruled itself out of the auction earlier this week.
Channel 5 owner Richard Desmond is seeking a price of about £700 million ($1.17 billion). He bought the net for £104 million ($174 million) in 2010, and has since slashed costs, and revamped its skeds.
It is a major buyer of Hollywood movies and series. This week's sked [schedule] include movies "Legally Blonde," "The Covenant" and "The Last of The Mohicans," and series "NCIS," "The Mentalist" and "American Idol."
Its biggest success has been "Big Brother."
FILED UNDER: Channel 5, Discovery Communications, Richard Desmond, Saban Capital, Scripps Networks, Viacom
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