BBC to sell Technology subsidiary

LONDON: The BBC will sell its wholly-owned commercial subsidiary BBC Technology. The move follows a strategic review of the BBC's technology requirements for the next decade.

The review identified potential annual savings for the BBC of between 20 - 30 million if its technology services were outsourced.

The review concluded that the BBC should conduct an European Union (EU) procurement process in which the winner would buy BBC Technology. As part of that process it will take on about 1,400 staff currently employed by BBC Technology.

Combining the procurement process with the sale of BBC Technology as a whole means the BBC can leverage maximum value and, as a result, invest more money in its programmes and services. The sale is subject to the approval of the Secretary of State for culture, media and sport.

The move offers growth opportunities for the staff at BBC Technology as the company will undoubtedly attract bids from major technology businesses with scale and expertise. 1,400 people are likely to transfer with BBC Technology to the successful bidder after the EU procurement process. This is due to be completed next year.

BBC Technology was created a couple of years ago to deliver significant savings to the BBC through its contract for technology services, including desktop support, and to generate third party revenues. The company has won important contracts in the UK and abroad with companies such as Hutchison 3G, ESPN, DirecTV and National Public Radio. Last year, BBC Technology delivered 19 million in profits and price reductions back to the BBC.

BBC Director-General Greg Dyke was quoted in an official release saying, "By taking our technical support contract to the market and selling BBC Technology we can achieve significant savings over a sustained period of time. We would also expect to receive a significant sum of cash for the business. While some BBC Technology staff will inevitably feel worried about the prospect of change we've reached the conclusion that this is a win/win situation for the BBC and the staff.

"This way the staff will continue working on BBC business. However at the same time BBC Technology, which has been very successful at winning outside contracts, will get the capital injection it needs to expand further albeit in someone else's ownership. When we were given our current funding agreement in the year 2000 by Chris Smith, the then Secretary of State for culture, media and sport, he made it a condition that we raised an additional one billion over the next seven years. He suggested one way of contributing to that was to sell a BBC asset. This is what is now planned."

Latest Reads
Zee Telugu announces the comeback of its iconic singing reality show, Sa Re Ga Ma Pa

MUMBAI: With a firm commitment to present fresh and novel content to Telugu viewers, Zee Telugu, leading Telugu General Entertainment Channel in Andhra Pradesh and Telangana, announces the comeback of its most popular music reality show – Sa Re Ga Ma Pa. In search of the best singing talent there...

Television TV Channels Regional
Rishtey enters urban GECs list, dethrones &TV in BARC week 11

Zee Anmol emerged as the leader pushing down Star Bharat to the second position in the Hindi GEC (U+R) region according to Broadcast Audience Research Council (BARC) all India data for week 11 of 2018.

Television TV Channels Viewership
BCCI extends India media rights submission till 3 April

The Board of Control for Cricket in India (BCCI) has extended its last date for submission of bids for the media rights for international and domestic matches at home for the next five years from 27 March to 3 April.

Television TV Channels Sports

Mumbai, 21 March, 2018: News18 REEL Movie Awards, a marquee property with Reliance Digital as the presenting sponsor, celebrated new age cinema like never before in presence of renowned artists, film-makers and producers at the Taj Lands End in Mumbai, yesterday. Personalities such as...

Television TV Shows Awards
Sony MAX2 is back with Season 3 of 'Timeless Digital Awards'

Sony MAX2 ‘Timeless Digital Awards’ is back with its 3rd season to delight its audience with an era of Hindi cinema that is evergreen and holds reminiscence till date. The ‘Sadabahar’ 50’s and 60’s gave birth to several inspiring masterpieces with legendary actors and films that became the voice...

Television TV Channels Movie Channels
The Boss Baby premieres March 25 at 1PM and 9PM

Staying true to the promise to premiere the biggest blockbusters of the year, Star Movies will air Academy Award nominated film, The Boss Baby on Sunday, March 25 at 1PM and 9 PM respectively. Starring the witty Alec Baldwin as Boss Baby along with popular host Jimmy Kimmel as Ted Timothy...

Television TV Channels English Entertainment
Bigg Boss speaks Marathi now

MUMBAI: The Bigg Boss voice is all set to boom in Marathi. Viacom18’s regional entertainment channel, Colors Marathi announced the launch of the Marathi version of India’s popular reality TV show Bigg Boss from 15 April.

Television TV Channels Regional
BARC gets ‘Great Place to Work' certification

MUMBAI: BARC India has been certified as ‘Great Place to Work’ for cultivating a culture of high trust and performance. The certification has been provided by Great Place to Work Institute, which is recognised for its rigorous and objective methodology for identifying and defining great workplaces...

Television TV Channels Viewership
Shemaroo appoints Hiren Gada as CEO in leadership rejig

MUMBAI: Gearing itself for the next phase of growth, Shemaroo Entertainment Ltd (Shemaroo) has restructured its top leadership making several timely appointments.  According to a release on the BSE website, the entertainment and content company has elevated Hiren Gada as the chief executive...

Television TV Channels People

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories