BskyB and Virgin Media Reach Agreements on
Sale of VMtv and Channel Distribution
June 04, 2010 06:18 AM Eastern Daylight Time
LONDON--(EON: Enhanced Online News)--British Sky Broadcasting (Sky; LSE:BSY) and Virgin Media
(NASDAQ:VMED)(LSE:VMED) today announced that they have reached agreement for the acquisition by Sky of
Virgin Media Television (VMtv). The companies have, in parallel, agreed to enter into a number of agreements
providing for the carriage of certain Sky standard and high-definition (HD) channels.
The agreements cover the following:
l Sky will acquire VMtv for a total consideration of up to £160 million in cash, with £105 million paid on
completion and the remainder paid following the regulatory process. The acquisition will expand Sky’s
portfolio of basic pay TV channels and eliminate the carriage fees it currently pays for distributing VMtv
channels on its TV services.
l Sky will assume responsibility for selling advertising for the newly acquired VMtv channels from January
l New carriage agreements will secure wholesale distribution of Sky’s basic channel line-up, including Sky1 and
Sky Arts, and the newly acquired VMtv channels, on Virgin Media’s cable TV service.
l For an incremental wholesale fee, Virgin Media will, for the first time, have the option of carrying any of Sky’s
basic HD channels, Sky Sports HD 1 and Sky Sports HD 2, and all Sky Movies HD channels.
l Virgin Media will make available through its on-demand TV service a range of content from Sky’s basic and
premium channels, including the newly acquired VMtv channels. Virgin Media will also have access to red
button interactive sports coverage and the opportunity to deliver selected standard definition programming
over the internet.
Completion of the agreements is conditional on obtaining merger control clearance in the Republic of Ireland.
Jeremy Darroch, CEO, BSkyB, said: “VMtv is an attractive investment opportunity which complements our existing
content business and delivers strateg