Viacom Closes Channel 5 Acquisition, Plans First Joint Commissions

LONDON: Viacom International Media Networks (VIMN) has officially completed its £450 million ($726 million) acquisition of Channel 5 from Northern & Shell, also announcing its first joint commissions between C5 and its U.K. pay-TV channels.

The deal was announced in May, but was closed this morning after receiving clearance from the European Commission.

Philippe Dauman, Viacom's president and CEO, said: “Our ownership of Channel 5 will significantly increase Viacom’s investment in British creativity and content. We are committed to strengthening Channel 5’s status as one of U.K. broadcasting’s premier brands, and we will continue to grow the network’s pipeline of original programming with more quality commissions, as well as acquisitions. The addition of Channel 5 will also benefit our existing U.K. pay-television channel portfolio, as demonstrated by the announcement of our first two original programming commissions.

“We are excited about our stewardship of Channel 5 and we look forward to delivering added value for our shareholders, partners and, above all, our audiences.”

Viacom has also announced the first joint commissions between Channel 5 and its U.K. pay-TV channels. Viacom’s Nickelodeon is joining forces with Channel 5’s preschool strand, Milkshake!, to develop a new animated series, Nella the Knight. The project is intended to be the first co-production under Viacom ownership. The series will be produced in the U.K. and co-funded by the two broadcasters, which will share broadcast rights. Episodes of Nickelodeon's SpongeBob SquarePants and Teenage Mutant Ninja Turtles will also begin airing on Channel 5.

Channel 5 and Viacom’s MTV UK are jointly commissioning a new entertainment series, 10,000 BC, in which 20 volunteers will forgo the comforts and conveniences of modern life to go back to the Stone Age. A 10×1-hour series is being produced by The Garden and GroupM Entertainment to premiere on Channel 5 in 2015, with a 5×1-hour spin-off show airing on MTV UK.

Channel 5’s commercial director of sales, Nick Bampton, and its COO, Paul Dunthorne, will report separately to David Lynn, the executive VP and managing director of VIMN UK, and join his U.K. senior management team, along with Channel 5’s program director, Ben Frow.  

Lynn said: “Channel 5’s senior executive and sales teams continue to perform strongly and, with an innovative approach to commercial partnerships, have delivered great results. We look forward to working with the senior team and in-house sales staff to build on this success.”