Future 'considers BBC Magazines bid'

Future Publishing has reportedly joined German publisher Bauer as the leading contenders to buy BBC Worldwide's magazines division, owner of Radio Times and Top Gear.

According to The Guardian, Future has been actively involved in the sale process for BBC Magazines, although its far from clear whether the firm will table a formal bid.

The Bath-based publisher, owner of more than 50 magazines including Total Film and T3, would need to pay in excess of £100 million to complete the deal. It is thought that an outlay of that size would require Future to secure external financing, as the company only has a market capitalisation of around £89m.

On Monday, BBC Magazines managing director Peter Phippen said that the organisation expects to have a "short shortlist" of bidders compiled in the next few weeks, and hopes to have the sale process - being handled by KPMG - completed by the summer.

The shortlist is thought to be down to just two companies, with one being German publisher Bauer, owner of two UK-based operations, Bauer Media and H Bauer.

However, some industry executives have questioned whether Bauer's acquisition of BBC Magazines would spark competition concerns, as it would give H Bauer control over TV listings magazine Radio Times. The company already publishes TV Choice and Total TV Guide.

"I'm sure IPC [publisher of TV Times] would have more than a little to say about H Bauer getting Radio Times," said one industry source. "It would mean control of something like 80% of the TV listings market."

BBC Worldwide, the BBC's commercial arm, confirmed plans last September to sell off its magazines division. The move came after the BBC's strategy review ordered Worldwide to focus on its international operations and "move away from physical media".

The sale is thought to involve a buyer taking on all of the BBC Magazines titles, but Worldwide intends to retain a significant degree of editorial control over its BBC brands.

BBC Magazines, which publishes 34 titles, saw its revenue drop by 1.3% to £168.3m in the year ending March 31, but profits actually increased by 13.6% to £18.4m due to a "significant" cost-cutting programme.