VMtv Sell-off Looks More Likely As CEO Wall Exits

imageThe speculation has rolled on for months that Virgin Media (NSDQ: VMED) will try to sell its content-making VMtv unit, but it looks increasingly likely now that the company has confirmed VMtv’s CEO Malcolm Wall is to leave the company after three years. What’s more, Times Online – which is now getting its turn in reporting the sell-off speculation – reports UBS has been brought in to handle the sale, with a hoped-for price tag of £500 million. VMtv operates Virgin’s own channels (Trouble, Bravo, Living, Challenge and Virgin 1), Sit-Up auction channels and half of the UKTV JV with BBC Worldwide.

That kind of money would be a helpful way to alleviate VMED’s high level of debt — but UKTV has been mooted as part of a merger between Worldwide and Channel 4. And the BBC has the option of buying VMED’s stake in the JV in the event of a third party offer, so the VMtv sell-off could force BBCWW’s hand.

Online, VMtv has been closing portals tied to TV brands over the last 18 months. It shut Trouble’s UGC site Homegrown, women’s site Siren was folded into the Living.co.uk, a part of virginmedia.com’s lifestyle channel. VMtv also operates iTV and online gaming via Challenge Jackpot while Most Haunted fans enjoy ghost hunting on the show’s webcams.

Wall, who joined from United Business Media (LSE: UBM) in 2006 has also worked for ITV’s regional companies including Granada, Anglia and Southern and played a key role in developing VMED’s pay TV strategy and its VOD service. He oversaw content deals for Virgin’s VOD service including the BBC’s iPlayer: Virgin’s VOD service brought in 516 million views overall in 2008. Wall also negotiated the carriage of Sky’s channels to Virgin customers.

(Photo: by tfyn)

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