BBC begins BBC Resources sell-off

[BGonaSTICK]

The BBC has announced the process for the sale of its commercial subsidiary, BBC Resources.

BBC Resources is one of the UK's leading providers of broadcast production facilities and services, and consists of three divisions: BBC Outside Broadcasts, BBC Studios and BBC Post Production, which have combined revenues of around £125 million.

The sale comes as a result of a BBC commercial review, which concluded the corporation should only own commercial businesses that either "export or exploit the BBC brand or content."

The BBC has already sold BBC Broadcast to Macquarie, and has since been renamed Red Bee Media.

A statement from the corporation said that: "Whilst the services provided by BBC Resources are vital to the BBC, they do not need to be owned by the BBC anymore."

"The BBC believes that the combination of BBC Resources under new commercial ownership and a continued partnership with the BBC will mean the corporation can leverage its strong relationship and heritage with BBC Resources. A new owner will provide the profitable and cash generative business with further opportunities for growth, which are not available whilst it is owned by the BBC, balanced with the stability of ongoing contracts with the BBC," the statement said.

Mike Southgate, chief executive, BBC Resources, said: "BBC Resources is full of talent, with a world-class reputation for understanding production values and programme making, both at the BBC and across the media marketplace. Taking our BBC heritage, the sale offers us the chance to grow the business and continue to lead the rapid changes taking place."

Advertisements will appear in the Financial Times, The Times and UK trade magazine Broadcast.

Andrew Thornton, project director, BBC, who is leading the sale, said: "This is a unique opportunity for any potential bidder; it's not everyday such a treasure trove of outstanding expertise and skills comes on the market. We are looking for a partner that will nurture this and continue to work closely with us to provide the unrivalled quality of services we need, as well as to capitalise on this in the wider industry."

It is expected that the sale of the business and transfer of BBC Resources staff to the successful bidder will take place by the end of March 2008, subject to contract negotiations and approvals. The sale is subject to the necessary approvals by the BBC's Executive Board and the BBC Trust.

The BBC said that it recognises the importance of staff in the sale process and will fully consult with the Unions and "work closely with staff to achieve a smooth transition during this process."

John Smith, chief executive, BBC Worldwide and BBC Board Sponsor for the sale, said: "We are committed to getting the best value for the BBC and licence fee payers, whilst putting staff interests at the heart of the process."