Scripps acquires Virgin Media stake in UKTV

Scripps Networks Interactive has announced a deal to acquire Virgin Media's 50% stake in UKTV. Scripps will pay pound239 million (Euro273 million) for Virgin Media's common equity and a further pound100 million for the preferred shares and debt owned by UKTV to Virgin Media.

Scripps and BBC Worldwide are negotiating a deal whereby the latter would have the option, after completion to increase its stake to 60% via a combination of cash and contributing a package of digital rights for UKTV. Scripps' voting rights and board representation would not be affected by the deal, which would be subject to approval by the BBC Executive and Trust.

BBC Worldwide CEO John Smith said that the new agreement they are developing will bring benefits to UKTV's audiences in the way they can consume content and will help to sustain UKTV's track record of growth. It will create the opportunity to drive further value from digital rights on behalf of our stakeholders, particularly our shareholder, the BBC.

UKTV operates channels Home, Good Food, Dave, Watch, GOLD, alibi, Eden, Blighty, Yesterday and Really, available via the Sky Digital and Virgin Media platforms. Completion of the deal is dependent on regulatory approval in Ireland and Jersey.