Sky 'mulls £600m bid for Virgin channels'

Sky is considering a £600m buyout of Virgin Media's television channels, according to a report.

Consultants Goldman Sachs are currently reviewing the firm's channel division, which includes Living TV, Bravo and Virgin 1, with a view to a possible sale.

According to The Observer, Sky also wants outright ownership of the UKTV channel group, which is currently shared half-and-half between Virgin Media and BBC Worldwide.

Under the current agreement, the BBC's commercial arm has the right to veto any change of ownership of Virgin's share. An outright purchase - if BBC Worldwide were to sell - would avoid this problem.

The report cites City sources saying that the Goldman Sachs review is close to completion.

Reports last month said BBC Worldwide was itself looking for investment partners for a buyout of Virgin's half of UKTV.