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Desmond asks Barclays to explore sale of Channel 5

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    [Deleted User][Deleted User] Posts: 2,967
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    ariusuk wrote: »
    I think the EU competition commissioner would have a big problem with a merged RTL / TF1.

    It is true that they will dominate French Commecial Broadcasting, but surely the state-owned France Televisions and Canal+ would prove enough competition?
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    1andrew11andrew1 Posts: 4,088
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    Discovery will now return to its overseas expansion plans, which could be good news for Desmond.
    http://www.reuters.com/article/2014/01/13/us-discovery-scripps-idUSBREA0C0C820140113
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    [Deleted User][Deleted User] Posts: 2,967
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    1andrew1 wrote: »
    Discovery will now return to its overseas expansion plans, which could be good news for Desmond.
    http://www.reuters.com/article/2014/01/13/us-discovery-scripps-idUSBREA0C0C820140113

    We have a Discovery-Scripps posibble deal thread on his forum! :D

    Anyway it is a shame they could not come to a deal despite it being a rather good one!
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    [Deleted User][Deleted User] Posts: 3
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    The CW is. But why would either Turner or CBS suddenly decide to take a big stake in a foreign country, where the TV system is very different to the US. Perhaps they're working together to both get a stronger foothold, but I don't see it. I think we'd have something more substantial than rumour (or at least a more publicised rumour) if they were really looking at it.

    And if The CW was going to launch in the UK would it not be aiming for the ITV2 type market? And therefore anything with prior PSB commitments, like news and to a lesser extent children's content, would be a no.

    But it wouldn't be the first time that CBS get involved in foreign FTA television. They bought a major steak in the Australian channel "Eleven" which they now co-own with Channel Ten Australia. Most of the content on the channel comes from CBS and CW. That's also the channel that broadcasts Neighbours.

    Given that CBS have already established a lot of their exports in the UK market via Ch5, I wouldn't consider it impossible for them to get involved in co-owning the channel.
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    1andrew11andrew1 Posts: 4,088
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    Long Guardian article today on Discovery including plenty of input from its chief executive David Zaslav.
    • * Discovery states it does not comment on specific transactions but The Guardian says it will be receiving an information pack on Channel 5 from Barclays.
    • * UK business has strong growth projections as it stands.
    • * Company has previously shown interest in buying Virgin Media's TV arm and its stake in UKTV
    • * Discovery bought Nordic broasdcaster for $1.7bn in December 2012.
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    CharnhamCharnham Posts: 61,387
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    DD John wrote: »
    But it wouldn't be the first time that CBS get involved in foreign FTA television. They bought a major steak in the Australian channel "Eleven" which they now co-own with Channel Ten Australia. Most of the content on the channel comes from CBS and CW. That's also the channel that broadcasts Neighbours.

    Given that CBS have already established a lot of their exports in the UK market via Ch5, I wouldn't consider it impossible for them to get involved in co-owning the channel.
    I am not sure the fact C5 airs CSI is enough to make the sale.
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    1andrew11andrew1 Posts: 4,088
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    DD John wrote: »
    But it wouldn't be the first time that CBS get involved in foreign FTA television. They bought a major stake in the Australian channel "Eleven" which they now co-own with Channel Ten Australia. Most of the content on the channel comes from CBS and CW. That's also the channel that broadcasts Neighbours.

    Given that CBS have already established a lot of their exports in the UK market via Ch5, I wouldn't consider it impossible for them to get involved in co-owning the channel.
    CBS's involvement in Channel 11 is like its involvement in the CBS-Chello Zone channels. Receive a 30% stake in return for supplying content but have little day-to-day involvement and certainly nothing like a takeover.
    http://www.mediaspy.org/report/2010/08/26/ten-announces-launch-of-eleven/
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    [Deleted User][Deleted User] Posts: 3
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    1andrew1 wrote: »
    CBS's involvement in Channel 11 is like its involvement in the CBS-Chello Zone channels. Receive a 30% stake in return for supplying content but have little day-to-day involvement and certainly nothing like a takeover.
    http://www.mediaspy.org/report/2010/08/26/ten-announces-launch-of-eleven/

    The CBS-Chello Zone channels are pay channels. The 11 network is a FTA multichannel.
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    RileyMRileyM Posts: 2,075
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    DD John wrote: »
    The CBS-Chello Zone channels are pay channels. The 11 network is a FTA multichannel.

    NOt in the UK as far as i'm aware. Aren't the UK CBS-Chello Zone channels (CBS Drama, CBS Reality, CBS Action, Horror Channel) FTA?
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    1andrew11andrew1 Posts: 4,088
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    DD John wrote: »
    The CBS-Chello Zone channels are pay channels. The 11 network is a FTA multichannel.
    In the UK, they're FTA and on Freesat channels 134 to 139 inclusive.
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    TelevisionUserTelevisionUser Posts: 41,417
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    1andrew1 wrote: »
    Long Guardian article today on Discovery including plenty of input from its chief executive David Zaslav.
    • * Discovery states it does not comment on specific transactions but The Guardian says it will be receiving an information pack on Channel 5 from Barclays.
    • * UK business has strong growth projections as it stands.
    • * Company has previously shown interest in buying Virgin Media's TV arm and its stake in UKTV
    • * Discovery bought Nordic broasdcaster for $1.7bn in December 2012.

    The bit below is most interesting, 1andrew1:
    Discovery has taken an interest in buying UK assets in the past, albeit in the pay-TV and production company sectors, but will nevertheless receive a detailed information memorandum on the Channel 5 sale from Desmond's bank Barclays in the coming weeks.

    If they're commissioning an acquisition viability assessment from a major financial institution then that shows that Discovery are seriously considering the Channel 5 group option which would give them an instant suite of digital TV channels in the UK.

    However, if such a deal were to proceed, Desmond would have to heavily compromise because experienced TV executive David Elstein said the group was only worth between £350 million-£450 million.
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    1andrew11andrew1 Posts: 4,088
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    The bit below is most interesting, 1andrew1:

    If they're commissioning an acquisition viability assessment from a major financial institution then that shows that Discovery are seriously considering the Channel 5 group option which would give them an instant suite of digital TV channels in the UK.

    However, if such a deal were to proceed, Desmond would have to heavily compromise because experienced TV executive David Elstein said the group was only worth between £350 million-£450 million.
    To clarify. The press report did not mention Discovery commissioning a report. It said Discovery was waiting for the report from Desmond's bank Barclays. So Barclays is working for Desmond not Discovery, per the thread title.
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    1andrew11andrew1 Posts: 4,088
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    The Guardian 20 February 2014 Richard Desmond is calling for prospective suitors to submit bids for Channel 5 by the end of next week, although some would-be buyers have concerns over details on issues such as programme deals and advertising sales.

    However, the paper reports a lack of clarity around issues including the amount of advertising that parent company Northern & Shell puts with Channel 5 for its publications like OK Magazine and The Express. It also reported a source as saying that Barclays' memorandum was "very light" on details on the status of some of its major programming and content deals.
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    linkinpark875linkinpark875 Posts: 29,703
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    1andrew1 wrote: »
    However, the paper reports a lack of clarity around issues including the amount of advertising that parent company Northern & Shell puts with Channel 5 for its publications like OK Magazine and The Express. It also reported a source as saying that Barclays' memorandum was "very light" on details on the status of some of its major programming and content deals.

    Well they moved Helix to 5* and they dropped The Walking Dead.

    Who wants a channel dropping all there rights?
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    ocavocav Posts: 2,341
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    Well they moved Helix to 5* and they dropped The Walking Dead.

    Who wants a channel dropping all there rights?

    Channel 5 have always dropped rights only for the show to come back bigger, Breaking Bad for example.

    Personally I feel Discovery would be the best buyer though as it will bring a lot of series over hopefully for repeat showings.
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    1andrew11andrew1 Posts: 4,088
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    ocav wrote: »
    Channel 5 have always dropped rights only for the show to come back bigger, Breaking Bad for example.

    Personally I feel Discovery would be the best buyer though as it will bring a lot of series over hopefully for repeat showings.
    My instinct is to disagree with first statement as you've only cited one programme and with that one programme it's hard to say that it's come back bigger when it's only been available in boxsets or on-demand!

    However, if you do have examples of programmes that Channel 5 dropped that have subsequently been more successful on other channels then I'm happy to change my mind. :)

    And I do agree with you that Discovery is a likely buyer. :)
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    [Deleted User][Deleted User] Posts: 7,488
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    Well they moved Helix to 5* and they dropped The Walking Dead.

    Who wants a channel dropping all there rights?

    Why would dropping rights make a difference? They were second run rights to The Walking Dead, it was a crap package anyway. And moving Helix to 5* suggests high standards and a willingness to give shows a shot.
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    linkinpark875linkinpark875 Posts: 29,703
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    Why would dropping rights make a difference? They were second run rights to The Walking Dead, it was a crap package anyway. And moving Helix to 5* suggests high standards and a willingness to give shows a shot.

    Not everybody has Sky though.

    Guess people can wait for the box sets though.
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    [Deleted User][Deleted User] Posts: 7,488
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    Not everybody has Sky though.

    Guess people can wait for the box sets though.

    What difference does that make to prospective buyer though. It makes no sense...
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    TelevisionUserTelevisionUser Posts: 41,417
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    ocav wrote: »
    Channel 5 have always dropped rights only for the show to come back bigger, Breaking Bad for example.

    Personally I feel Discovery would be the best buyer though as it will bring a lot of series over hopefully for repeat showings.
    1andrew1 wrote: »
    My instinct is to disagree with first statement as you've only cited one programme and with that one programme it's hard to say that it's come back bigger when it's only been available in boxsets or on-demand!

    However, if you do have examples of programmes that Channel 5 dropped that have subsequently been more successful on other channels then I'm happy to change my mind. :)

    And I do agree with you that Discovery is a likely buyer.
    :)

    A few weeks ago, we know that Discovery were interested in acquiring Scripps, the co-owners of UKTV, so they're certainly interested in expanding. I also hope it's Discovery since they'll get a ready made suite of digital channels and Discovery's immense back catalogue can be used to fill programming slots across the Channel 5 group.
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    omnidirectionalomnidirectional Posts: 18,822
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    pburke90pburke90 Posts: 14,758
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    If the person who bought it and tried to turn it around is walking away and wants to sell just a few years later, what does that say to any prospective buyers?

    Anyone buying it needs to give the entire network a major, MAJOR overhaul.
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    ftakeithftakeith Posts: 3,476
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    hope itv buys channel 5 to shake fta terrestrial EPG
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    derek500derek500 Posts: 24,892
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    ftakeith wrote: »
    hope itv buys channel 5 to shake fta terrestrial EPG

    No value in an existing PSB broadcaster buying another expensive PSB licence.
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    CharnhamCharnham Posts: 61,387
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    Channel 5 was starting to show improvement, but now its dropped alot of its US TV shows, its pissed off alot of people, for very little reward, the new owners will have to work to win viewers back, not only to current shows, but to any shows that start on Channel 5, as Desmond as sent the message loud and clear, if Channel 5 starts to air a show, it most likely wont finish airing it.
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