NEWS: City doubts ITV Digital will find buyer - Freeview

Howard · 24-04-2002, 10:37

City doubts ITV Digital will find buyer

John Cassy
Wednesday April 24, 2002
The Guardian

ITV Digital lurched closer to liquidation yesterday as doubts grew over the administrator's ability to sell the stricken pay-television platform as a going concern.

Although Nick Dargan, of administrator Deloitte & Touche, has expressed confidence that he would complete a sale and the Football League has suggested it could form part of an audacious bid for the platform, most City observers believe ITV Digital's future is bleak.

The independent television commission and Mr Dargan are working overtime to ensure that regulations allow any bidder to take on the existing broadcasting licenses but buyers looked thin on the ground.

The regulator is understood to be working on an interim plan that could see the BBC and BSkyB join forces to keep digital terrestrial TV broadcasting while liquidators find a buyer to take over the assets in the long term. BSkyB has insisted it has no intention of acquiring the platform.

Stephen Grabiner, a former boss of ITV Digital now working at venture capital firm Apax Partners, is thought to have expressed an interest to the administrator but it is unclear whether he will actually lodge a bid. Apax declined to comment yesterday.

Two other candidates - former BSkyB managing director David Chance and ex-Channel 5 boss David Elstein - are thought to have said they are not interested in heading bids.

Football League chief executive David Burns said clubs could offer to buy the platform in partnership with another broadcaster but analysts dismissed the notion.

ITV Digital boss Stuart Prebble has been linked to a management buyout but colleagues think that is unlikely.

"This isn't a typical venture capital play," said Robin Lincoln of private equity group Hg Capital. "The risk feels high because digital terrestrial TV hasn't really worked any where. The reward looks to be capped by a combination of government intervention and a strong competitor in BSkyB."

Meanwhile, ITV received a rare piece of good news yesterday when it secured foreign currency firm Travelex as sponsor for its World Cup programmes. Travelex paid £3m - 25% less than Vauxhall for the 1998 competition - but the decline reflects the early morning kick-off for most games. "The games are not scheduled for prime time and the price reflects fair market value," said a spokeswoman for Granada Enterprises, broker of the deal.

24-04-2002, 10:37	#1
Howard Forum Member Join Date: Mar 2000 Location: Nr. Rugby Posts: 195	NEWS: City doubts ITV Digital will find buyer City doubts ITV Digital will find buyer John Cassy Wednesday April 24, 2002 The Guardian ITV Digital lurched closer to liquidation yesterday as doubts grew over the administrator's ability to sell the stricken pay-television platform as a going concern. Although Nick Dargan, of administrator Deloitte & Touche, has expressed confidence that he would complete a sale and the Football League has suggested it could form part of an audacious bid for the platform, most City observers believe ITV Digital's future is bleak. The independent television commission and Mr Dargan are working overtime to ensure that regulations allow any bidder to take on the existing broadcasting licenses but buyers looked thin on the ground. The regulator is understood to be working on an interim plan that could see the BBC and BSkyB join forces to keep digital terrestrial TV broadcasting while liquidators find a buyer to take over the assets in the long term. BSkyB has insisted it has no intention of acquiring the platform. Stephen Grabiner, a former boss of ITV Digital now working at venture capital firm Apax Partners, is thought to have expressed an interest to the administrator but it is unclear whether he will actually lodge a bid. Apax declined to comment yesterday. Two other candidates - former BSkyB managing director David Chance and ex-Channel 5 boss David Elstein - are thought to have said they are not interested in heading bids. Football League chief executive David Burns said clubs could offer to buy the platform in partnership with another broadcaster but analysts dismissed the notion. ITV Digital boss Stuart Prebble has been linked to a management buyout but colleagues think that is unlikely. "This isn't a typical venture capital play," said Robin Lincoln of private equity group Hg Capital. "The risk feels high because digital terrestrial TV hasn't really worked any where. The reward looks to be capped by a combination of government intervention and a strong competitor in BSkyB." Meanwhile, ITV received a rare piece of good news yesterday when it secured foreign currency firm Travelex as sponsor for its World Cup programmes. Travelex paid £3m - 25% less than Vauxhall for the 1998 competition - but the decline reflects the early morning kick-off for most games. "The games are not scheduled for prime time and the price reflects fair market value," said a spokeswoman for Granada Enterprises, broker of the deal.