RTL loses interest in UBM's Channel 5 stake
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.RTL, the majority owner of Channel 5, is not interested in buying the 35 per cent stake in the broadcaster put up for sale by Lord Hollick's United Business Media.
For the first time, RTL yesterday stated openly that it had lost interest in buying the UBM holding in the UK station, as the pan-European broadcaster reported group interim results. RTL, increasingly aggressive in its plans for Channel 5, also announced it would increase the programming budget for the station for next year by 7 per cent to £158m.
Didier Bellens, RTL's chief executive, said: "We have decided to build Channel 5 with a partner. We prefer to work with a partner at a time when we are building this channel."
Although RTL has tried to buy the Channel 5 stake from UBM in the past, it balked at the reported £500m asking price. UBM is now trying to find other buyers.
After the recent publication of the draft Communications Bill, US broadcaster can, for the first time, buy into the UK sector. It is thought some American operators have recently shown interest in buying the 35 per cent holding in Channel 5.
Mr Bellens said that in the UK, the company would prefer to spend its cash on better programming for Channel 5, which is trying to shake off its image as a broadcaster of low-grade programmes.
The station will celebrate its fifth birthday with a rebranding next week. Mr Bellens said RTL would work with any new partner in Channel 5 to overtake Channel 4's position as the UK's number two commercial broadcaster, after the troubled ITV.
First-half revenue at Channel 5 rose 15 per cent to €121m (£76m) and sales are set to climb more than 20 per cent this year. Both ITV and Channel 4 are seeing shrinking revenues. Channel 5 is on course to break-even next year, RTL said.
Mr Bellens re-iterated that RTL is not interested in acquiring ITV, which it sees as being in terminal decline. Mr Bellens added he was confident about holding onto Channel 5's chief executive, Dawn Airey, who has been approached by ITV.
Mr Bellens dampened speculation that RTL planned a move into UK radio, saying it was not a "top priority". RTL, which is majority-owned by the private German media giant Bertelsmann, will cancel its stock market listing in London. It will remain listed in Brussels and Luxembourg.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments