BBC has sold its The BBC Broadcast digital media distribution service to Creative Broadcast Services--an Australian-based business consortium owned by investment group Macquarie Consortium, for £166 million (U.S. $304 million).
BBC Broadcast provides a range of services to play-out, publish and provide media access for content across television, mobile phones and more.
The deal will be complete by the end of summer, pending the approval of the Secretary of State for Culture, Media and Sport. Pam Masters, managing director, BBC Broadcast said now is the time for the business to flourish under new ownership and increased investment.
"We feel confident the decision is right for our business and staff," she said.
However, several reports said the trade union that represents most of the BBC Broadcast staff is opposed to the deal.
The Sydney, Australia-based consortium, an investment group that includes the Macquarie Bank and one of its funds, Macquarie Capital Alliance Group (MCAG) says it will delay expected layoffs for one year, according to several reports. In March it was reported that the BBC would save $615 million annually by laying off nearly half of its professional services staff.
BBC has been reorganizing itself over the past several years by selling off certain divisions. In 2004, the U.K. broadcaster sold its R&D division, BBC Technology to Siemens Business Services in a deal worth approximately $2 billion.
