ITV, BBC mull $1.3bn UKTV bid

ITV is considering linking up with the BBC to make a £1bn (US$1.3bn) bid to buy out Discovery’s 50% stake in multichannel broadcaster UKTV, according to a UK report.

UKTV is currently jointly owned by the BBC’s commercial arm, BBC Studios (formerly known as BBC Worldwide), and Discovery Communications, after the latter’s recent deal to acquire Scripps Networks Interactive for US$14.6bn.

The BBC has the right to buy out Discovery at a set price, but the terms of the joint venture require this to be agreed before the end of next week, the Telegraph reports.

The BBC has already approached pay TV giant Sky about a potential pact to buy out Discovery’s stake, but the talks did not move forward, according to the Telegraph.

In November, the Telegraph reported that the BBC’s commercial arm was considering a £500m bid for full control of UKTV. However, there have been doubts about the BBC’s ability to complete the deal itself due to a £350m cap on BBC debt set by the Government.

ITV is now considering making a move with its rival UK broadcaster in order to strengthen both firms’ hands against the growing power of streaming services such as Netflix.

Meanwhile, Discovery is reportedly working on an alternative plan to break up UKTV, which operates channels such as Dave, W and Gold in the UK and revealed its largest ever slate of originals last year.