Desmond ‘steps down’ from C5 board

Channel 5 owner Richard Desmond has reportedly stepped down from the UK terrestrial’s board of directors ahead of a potential sale.

It came to light last month that C5’s parent company Northern & Shell is scouting out potential interest in the business with an asking price of £700m (US$1.16bn).

The Independent newspaper reports today that Desmond has now stepped down from the C5 board as Barclays Bank continues to work to a February 27 deadline to attract offers. The company has declined to comment.

Northern & Shell bought C5 from the RTL Group for £103.5m in 2010. It has since turned around its performance with a revamped schedule which includes Big Brother and US dramas such as Under the Dome and Mark Burnett’s The Bible.

US companies US companies Time Warner, Viacom, Discovery and Scripps have all been linked with a move, as has commercial terrestrial rival ITV.

But perhaps the most intriguing prospect is the potential of a bidding war between the UK’s pay TV giants BskyB and BT who may see a terrestrial channel as a vital weapon in their ongoing landgrab battle over sports rights. Certain events – such as the Wimbledon tennis tournament, British Open Golf and football’s World Cup – are protected under British broadcast regulations and must air on a free to air channel, currently ruling Sky and BT out of the bidding.

Tim Westcott, principal analyst at IHS, told C21 last month that despite the turnaround in its fortunes, C5 is overpriced at £700m but any potential buyer can be reassured by Ofcom’s confirmation this week that the channel’s license has been extended for ten years.

Meanwhile, in related news, the broadcaster has acquired the free-to-air UK rights to NCIS: Los Angeles from the show’s producer and distributor CBS Studios International.

The first season will begin on C5 on February 28 at 22.00, the first time it has been shown free in the UK. C5 has previously been the home of other offshoots of the NCIS franchise.