Scripps Networks Buys UKTV Shares from Virgin Media

KNOXVILLE: Scripps Networks Interactive has reached a deal to acquire Virgin Media’s 50-percent holdings in UKTV, with the other half being retained by BBC Worldwide.

Scripps, whose portfolio includes the lifestyle brands HGTV, Food Network, Travel Channel, DIY Network and Cooking Channel, is set to pay £339 million ($555 million) to Virgin in the deal. Scripps and BBC Worldwide are negotiating an agreement that would give BBC Worldwide the option to increase its holdings to a maximum of 60 percent, via a combination of cash and a package of digital rights for UKTV.

The UKTV portfolio includes ten lifestyle, entertainment and factual channels. Its brands include Home, Good Food, Dave, Watch, GOLD, Alibi, Eden, Blighty, Yesterday and Really, along with complementary websites for each channel brand.

"UKTV is a significant opportunity for Scripps Networks Interactive to participate in a thriving multi-channel, dual-revenue-stream media business in one of the world’s largest television markets," said Kenneth Lowe, the chairman, president and CEO of Scripps Networks Interactive. "Making a solid investment in UKTV and entering into a strong partnership with BBC Worldwide reinforces our core international strategy, which we believe will create significant long-term value for our shareholders."