BBC could lose UKTV stake

The UK government is considering whether the BBC should sell off its 50% stake in multi-channel operator UKTV.

John Whittingdale

Culture secretary John Whittingdale is believed to be keen to see the BBC’s commercial arm, BBC Worldwide (BBCWW), sell its stake in UKTV – a joint venture with US pay TV broadcaster Scripps.

The BBC previously turned down a £500m (US$716m) offer from Scripps to take full control of UKTV, which owns 10 channels including Gold and Dave.

Selling the stake would be huge blow to the pubcaster because UKTV provides about a third of BBCWW’s profits.

The corporation is already faced with trying to cover the £650m cost of free TV licences for pensioners which the government previously funded but passed on to the BBC last year.

The Sunday Times has reported that half of the proceeds from a proposed sale would go to the UK Treasury.

Whittingdale is involved in negotiations with the BBC over a new royal charter and is expected to publish his proposals in a white paper in May.

Whittingdale has previously denied that the present Conservative government is seeking to dismantle the BBC.