Australian group acquires BBC’s Multimedia Division for £166m

Australian group acquires BBC’s Multimedia Division for £166m

	Published : Mon, 27 Jun 2005 16:35 By : Amy Watts Print this Story

SYDNEY: BBC’s digital media subsidiary BBC Broadcast, was yesterday sold to an Australian consortium for £166 million. The consortium ‘Creative Broadcast Services’ comprises investment fund Macquarie Capital Alliance Group (MCAG) and Macquarie Bank, Australia's largest investment bank who will now own 65 percent and 35 percent of the unit respectively.

The new owners have also agreed to honor a one-year moratorium on compulsory job losses. The BBC Broadcast’s 1100 staff’s trade union BECTU had last month opposed plans to sell the unit. The union had staged a one day walk-out to protest against the proposal to sell the unit. They had even planned a 48-hour strike which was dropped after the Corporation’s management promised a one-year moratorium on compulsory job cuts and to protect staff conditions at the unit.

Analysts said the deal was a most strategic buy for the Australian investors. The unit handles on-air promotion, subtitling and play-out which are vital support services for BBC’s output and had an exclusive agreement with the BBC until the end of 2015. That alone ensured revenues of over £500 million during the period.

Its state-of-the art facilities placed it at an advantage for opportunities in Europe besides making advances into new media of communications. It also represented “excellent value for licence fee-payers” according to Peter Phillips, BBC’s director of business development.

MCAG chief Michael Cook was optimistic about consistent growth in demand for play-out services, going by the increasing number of content providers and TV channels.

The Corporation had decided to sell the unit after reviewing its commercial businesses in December. The deal will require approval from the Department of Culture, Media and Sport.

As per terms of the deal, BBC Broadcast’s senior management team would be retained.