Fight must go on for Five
SOURCES close to pan-European broadcaster RTL Group yesterday poured cold water on speculation that newspaper tycoon Richard Desmond has sealed a deal to buy its beleaguered UK television channel Five, calling it “wishful thinking”.
Desmond, the owner of Express newspapers and OK! magazine, was though to be on the brink of clinching an agreement to snap up Five for £100m, knocking back rival offers from weighty names such as Time Warner, BSkyB and Big Brother producer Endemol. But sources familiar with owner RTL’s thinking insisted no deal had yet been struck and that several interested parties are still in the running for the channel.
Desmond is thought to have approached UK media regulator Ofcom last week on his plans for the channel, which include keeping its public service licence requirements and persuading current chief executive Dawn Airey to remain at the helm. However, he would also look to implement a wide-ranging cost-cutting drive at the channel, which lost £37m last year.
Desmond’s offer of £100m is more than some analysts had predicted, with some saying the channel could go for a nominal sum due to its expensive long-term contracts with series such as US crime show CSI.