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Sir Michael Lyons
fighting his corner: Trust chairman Sir Michael Lyons wants to keep BBC Worldwide

BBC moves closer to partnership with Channel 4

Gideon Spanier
22.01.09

The BBC has reluctantly moved a step closer to agreeing a partnership between its commercial arm, BBC Worldwide, and Channel 4.

BBC executives have come under pressure from ministers to support loss-making C4 after Culture Secretary Andy Burnham said today he favoured a partnership between them.

Burnham told the Oxford Media Convention that he backed proposals by media regulator Ofcom for an enlarged public-service broadcasting rival to the BBC, with "Channel 4 at its heart".

He said it was vital there was a stronger alternative broadcaster that could provide public-service news, current affairs, drama and children's programmes.

The Culture Secretary added that a link-up between BBC Worldwide and C4 was the best starting-point for negotiations, rather than a merger between C4 and Five.

Worldwide sells BBC programmes such as Top Gear overseas and owns magazines such as Radio Times.

The BBC does not want to give up control of Worldwide and is opposed to a full merger between its commercial arm and C4.

"It couldn't be right for the BBC to play the role of Lloyds Bank," said Sir Michael Lyons today.

He was referring to how Lloyds TSB was left badly off by the takeover of HBOS, which was brokered by the Government.

But Lyons added that the BBC "is changing, it is reaching out to partners".

Broadcasting sources said Worldwide and C4 are discussing some form of partnership. The two sides are reported in early talks with Virgin Media to buy its 50% stake in UKTV, which owns cable channels Gold and Dave. BBC Worldwide already owns the other 50% stake.

Despite opposition from the BBC, C4 is understood to remain keen to discuss a full merger with Worldwide as an option.

Lyons said: "BBC Worldwide is integrally part of the BBC. Its umbilical cord leads directly to the quality of BBC programme-making. It mustn't be put at risk."

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