BBC sells its Audiobooks division

BBC Worldwide has sold an 85% stake in BBC Audiobooks, which publishes bestsellers such as Under Milkwood, The Hitchhiker's Guide to Galaxy and Winnie the Pooh.

The stake has been purchased for over £10m by AudioGo Ltd, a six-strong consortium led by former Polygram executive Michael Kuhn. Worldwide will retain a 15% stake in the business.

Formed in 2001, BBC Audiobooks is the leading audio publisher in the UK. Its products include CDs and digital downloads for retail and library markets, such as I'm Sorry I Haven't A Clue and the recent BBC Radio 4 John Le Carre dramas.

The division, which is a six-time winner of 'Audio Publisher Of The Year', has also developed a large-print book business and a direct-mail operation called The Audiobook Collection.

Last year, Audiobooks recorded its one millionth digital download, as part of a 30% year-on-year growth in its digital sales.

After the sale, Audiobooks will primarily trade as AudioGo Ltd but continue to publish BBC-sourced content under the BBC Audiobooks imprint.

Worldwide chief executive John Smith said that he is pleased to complete the sale process for Audiobooks, which was started last year.

"BBC Worldwide will remain a shareholder in the business, and looks forward to participating in its future success," he said.

"Sale proceeds will be reinvested in our international businesses, supporting future returns to the BBC, and therefore benefiting the licence fee payer."

AudioGo's chairman Michael Kuhn added: "The partners in AudioGo Ltd are committed to building on the past achievements of BBC Audiobooks as it enters the digital age.

"Opportunities are many and exciting and we will immediately get to it with managing director Mike Bowen and his team, and in partnership with BBC Worldwide, to create new offerings to our customers worldwide."

The sale of BBC Audiobooks is part of Worldwide's efforts to dispose of its non-core assets in line with the new BBC strategy. The next major sale is likely to be BBC Magazines, which publishes titles such as Radio Times and Top Gear.