Massive BBC Sell Off

Three of the biggest media groups have been invited to discuss possible bids for BBC Worldwide.

Executives from Time Warner, Walt Disney Corporation and Germany’s Bertelsmann will hold talks with the BBC in the next few weeks.

Assets include the BBC America and BBC Prime channels, along with 26 magazine titles, merchandising operations and the overseas program sales unit.

BBC executives believe the Worldwide division, which generated free cashflow of 141 million pounds sterling in the 12 months to the end of March, could be worth up to two billion pounds.

The BBC is considering a possible sale of its commercial operations, as part of an internal review after the fallout from the Hutton inquiry report.

Former Director General, Greg Dyke, resigned after a judicial report into the suicide of respected Defence Ministry weapons expert, David Kelly, slammed the BBC for lax editorial management.

Kelly had been the source of a BBC radio report, which alleged the UK Government had ‘sexed up’ pre-war intelligence on Iraq and weapons of mass destruction.

The report cleared Tony Blair of serious wrongdoing, but heavily criticised the BBC for failing to take Downing Street’s protests about the report seriously.

The Corporation is preparing for the 2006 renewal of the royal charter that sets out its mandate and powers.

Granted its first royal charter in 1927, the BBC runs eight tv channels, 10 national radio stations, 50 local tv and radio stations, the 43 language World Service, 30 magazines, a vast website and six orchestras and choirs.

Its broadcasting budget of three billion pounds is largely funded by a 116 pound annual tax on households with TV sets.