BSkyB To Buy Into Channel 5?

BSkyB is rumoured to be in talks with Channel 5 about the possibility of acquiring a stake in the company.

BSkyB is the latest of a number of potential investors reported to have been in negotiations with Channel 5 after speculation that the channel is seeking new investment.

Rupert Murdoch, who has made no secret of desire to enter into mainstream TV, lost the bidding for the Channel 5 licence when the station was launched, and if speculation is to be believed is a likely candidate to acquire a stake in the company should the opportunity arise.

A spokesperson for Channel 5 today refused to comment saying only that: “Channel 5 is continually looking to form strategic alliances. Companies have been interested in Channel 5 in the past and we anticipate that they will continue to do so in the future.”

Channel 5, which is owned by RTL and United Business Media, achieved an audience share of 5.8% recently and chief executive Dawn Airey remains confident that it will reach its target of 6% by the end of the year. However with a budget that is considerably less than that of its rivals and with the downturn in advertising revenue taking its toll on commercial TV, speculation is growing that the channel is in need of further investment to maintain its momentum.

Channel 5: 020 7550 5555 www.channel5.co.uk

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