Discovery, BSkyB in Talks Over Joint Channel 5 Bid

LONDON: John Malone's Discovery Communications is reportedly in discussions with BSkyB to make a joint bid for Channel 5, which is being sold by Richard Desmond.

The Financial Times reported that the talks between Discovery and BSkyB have focused on BSkyB taking over Channel 5's advertising sales operation. Bids for the channel are due next Thursday.

Desmond bought Channel 5 in 2010 for £104 million. He now sees a valuation of £700 million.

News Corp. currently owns a 39.1 percent stake in BSkyB. The Channel 5 bid would bring together News Corp.'s Rupert Murdoch with Malone, after the two quarreled in 2006 when Malone covertly took an 18 percent share in News Corp. It would also further Discovery and BSkyB's business relationship. BSkyB has carried a number of Discovery channels on its pay-TV service