Breaking News: BBC Magazines sells its stake to Times of India owner Bennett, Coleman & Co
BBC Worldwide's 50% shareholding in Indian joint venture for magazine publishing, Worldwide Media, is being sold to Times of India owner Bennett, Coleman & Co.
17 Aug 2011 | 4638 Views | By Samir Lukka
Worldwide Media, which has an enviable bouquet of brands and magazines, ranging from Indian favourites to international bestsellers publishes popular titles like Filmfare, Femina, Grazia, Hello, including the Indian editions of BBC’s Top Gear, Lonely Planet and Knowledge.
Tarun Rai, CEO of Worldwide Media said: "Our association with BBC Worldwide will continue through the BBC titles we publish - Top Gear, Lonely Planet and Knowledge. The last five years with BBC Worldwide have been extremely fruitful. We have today a very talented team and a diverse portfolio of magazines."
The whole procedure will be completed by the end of September, after which Worldwide Media will be a solely owned company of Bennett, Coleman and Co.
"Worldwide Media has been on a path of aggressive growth and that will not change," added Rai.
In a separate sell-off, the BBC Worldwide has sold its consumer magazine division via a licensing and sales agreement to a UK-based private equity firm Exponent. The deal will have over 30 magazines published by BBC Magazines move to Exponent.
Although for key BBC brands, such as the magazines like Top Gear as well as Lonely Planet and Good Food, the new Exponent-owned business will act as a contract publisher. Overall, the deal is expected to raise $200 million for BBC.
BBC staff was informed of the sale earlier today in an email from BBC Worldwide chief executive John Smith who said: "I believe that the deal with Exponent offers the best prospects for BBC Magazines to continue on the path of success. This transaction brings a focus and degree of investment that BBC Worldwide alone is unable to provide. We believe this will put BBC Magazines in the strongest position to meet the challenges and opportunities that lie ahead in a rapidly evolving market."
In a statement, BBC Worldwide said the deal had full approval of the BBC Trust and will create a business unit to oversee the management, editorial compliance and contractual relationship under the agreement.
BBC Magazines made a profit of £21.6m, up 9.1% year-on-year, on revenues of £164.5m, down half a percent, in 2010.
Click here to read the feature on Magazine Publishing in India
Tarun Rai, CEO of Worldwide Media said: "Our association with BBC Worldwide will continue through the BBC titles we publish - Top Gear, Lonely Planet and Knowledge. The last five years with BBC Worldwide have been extremely fruitful. We have today a very talented team and a diverse portfolio of magazines."
The whole procedure will be completed by the end of September, after which Worldwide Media will be a solely owned company of Bennett, Coleman and Co.
"Worldwide Media has been on a path of aggressive growth and that will not change," added Rai.
In a separate sell-off, the BBC Worldwide has sold its consumer magazine division via a licensing and sales agreement to a UK-based private equity firm Exponent. The deal will have over 30 magazines published by BBC Magazines move to Exponent.
Although for key BBC brands, such as the magazines like Top Gear as well as Lonely Planet and Good Food, the new Exponent-owned business will act as a contract publisher. Overall, the deal is expected to raise $200 million for BBC.
BBC staff was informed of the sale earlier today in an email from BBC Worldwide chief executive John Smith who said: "I believe that the deal with Exponent offers the best prospects for BBC Magazines to continue on the path of success. This transaction brings a focus and degree of investment that BBC Worldwide alone is unable to provide. We believe this will put BBC Magazines in the strongest position to meet the challenges and opportunities that lie ahead in a rapidly evolving market."
In a statement, BBC Worldwide said the deal had full approval of the BBC Trust and will create a business unit to oversee the management, editorial compliance and contractual relationship under the agreement.
BBC Magazines made a profit of £21.6m, up 9.1% year-on-year, on revenues of £164.5m, down half a percent, in 2010.
Click here to read the feature on Magazine Publishing in India