Olswang has advised BBC Worldwide on a sale and licensing deal in relation to its consumer magazine business. Following a competitive tender process and approval from the BBC Trust,  the deal with Exponent Private Equity (“Exponent”) was announced on 16 August and is expected to complete in the autumn, following OFT clearance.

At the same time, BBC Worldwide separately agreed the sale of a 50% shareholding in Worldwide Media, a publishing joint venture in India, to fellow shareholder, Bennett, Coleman & Co. Ltd, owner of The Times of India. Together with the Exponent deal, these transactions will deliver a total of £121m to BBC Worldwide, with the majority of the proceeds going back to the BBC to support continued investment in British content. 

Exponent will be taking over, in full, a number of magazine titles currently published by BBC Worldwide including the Radio Times and Olive magazine. Other titles which are more obviously associated with the BBC brand and its programmes, such as Gardeners’ World and Top Gear, will be published by Exponent under licensing and contract publishing arrangements. 

Whilst a small team will be retained by BBC Worldwide to oversee these ongoing licensing and contract publishing deals, the majority of the BBC Magazines staff will transfer along with the business upon completion. 

The deal also sees Exponent acquire the specialist publisher, Origin Publishing (in which BBC Worldwide holds a minority stake), together with BBC Magazine’s 50% stake in subscriptions fulfilment company, Dovetail, and its shareholding in the distribution business, Frontline. 

The multi-disciplinary Olswang team included Simon Morgan and senior associate Tom Crease (Corporate), Selina Potter and Victoria Gaskell (Commercial) and Mark Joscelyne (Tax). Specialist employment, pensions and real estate advisors were also involved. Exponent was represented by Travers Smith.

Olswang has advised BBC Worldwide on a number of joint ventures and other transactions over the years, including the Animal Planet joint venture with Discovery and BBC Worldwide’s DVD distribution business, 2entertain.

Leading the deal on the commercial side, Olswang partner Selina Potter said:

 

“Olswang has supported BBC Worldwide in its strategic partnerships for over a decade now. This latest deal is a significant milestone for BBC Worldwide’s publishing arm which will see a number of magazine titles continue to prosper under the helm of Exponent. We are delighted for the deal to have been signed and look forward to its completion later this year.”

Olswang also advised BBC Worldwide in relation to the recently announced proposed sale by Virgin Media of its 50% stake in UKTV to US TV company Scripps Networks for £339m. BBC Worldwide owns the remaining 50% of UKTV, a venture which was established in 1997, with support from Olswang. Today, UKTV is home to a portfolio of 10 pay-TV channels.