BBC Worldwide and Exponent Private Equity agree BBC Magazines transaction

• Exponent Private Equity to acquire all non-BBC branded magazines in full; plus rights to publish BBC branded titles under licensing and contract publishing arrangements;
• Transaction has full BBC Trust approval and is expected to complete in autumn 2011, following OFT clearances;
• Exponent also to acquire BBC Magazines' stake in Dovetail (subscriptions fulfilment) and Frontline (distribution); it will also acquire full control of specialist publisher Origin;
• Bennett, Coleman & Co. Ltd to acquire BBC Magazines' 50% shareholding in Indian joint venture Worldwide Media Ltd;
• Transactions will deliver a total of £121m to BBC Worldwide, supporting increased returns to the BBC and continuing investment in British content;
• Further details of transaction and new company to be established by Exponent, to be announced after completion;
• BBC Magazines staff and operations to transfer to the new company on completion.
  

BBC Worldwide and Exponent Private Equity ("Exponent") today announce that they have signed a sale and licensing agreement for the publication of titles currently published by BBC Magazines, BBC Worldwide's consumer magazines business. Under the terms of the deal Exponent will acquire, in full, Radio Times and a number of magazines less closely aligned to the BBC, as well as the rights to publish BBC-branded titles under licensing and contract arrangements.

The transaction received full approval from the BBC Trust on 21 July and today's announcement concludes a rigorous process. Completion is expected to take place in the autumn, following clearance from the Office of Fair Trading.

Exponent is also to acquire BBC Magazines' 50% stake in Dovetail, its subscriptions fulfilment company and its share of distribution business, Frontline. In addition, Exponent will acquire specialist publisher Origin Publishing ("Origin"), in which BBC Magazines currently holds a minority stake. 

At the same time, BBC Worldwide announces that it has agreed the sale of a 50% shareholding in Worldwide Media, a publishing joint venture in India, to fellow shareholder, Bennett, Coleman & Co. Ltd, owner of The Times of India. 

These transactions will deliver a total of £121m to BBC Worldwide, with the majority of the proceeds going back to the BBC.

 

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(Source : BBC Worldwide Press Release)