BBC Worldwide has begun talks with firms including Cinven, Kohlberg Kravis Roberts and Providence Equity Partners about a combined offer for Virgin Media Television, which includes the 50% share of the UKTV content business that the BBC does not already own. ... The BBC is interested in partnering with a private equity group to secure full control of UKTV in order to allow it to sell its content to broadcasters and other media groups around the world.
Goldman Sachs Group Inc. has already been hired by Virgin Media to review the company's content business, a move that analysts predict will lead to a sale. Talk of a buyout by private equity has swirled around the company since last year when the Carlyle Group made an $8 billion to $10 billion ($30- $35 per share) offer for Virgin Media that sparked an auction for the company. Unfortunately the credit crunch hit, and the auction quickly fell apart.
Still, the rumor should be taken with a grain of salt as the LBO of Virgin Media is a favorite story for London's papers. Last month Reuters'
quashed a Sunday Observer report that a consortium of top-tier private equity firms was planning a $6 billion to $7.5 billion take-private of Virgin Media.
- George WhiteSee the Sunday Telegraph storySee Dealscape post on prior Virgin Media rumor
