Viacom Acquires Channel 5

Viacom and Northern & Shell Media Group have announced a definitive agreement for the acquisition of Channel 5 Broadcasting Limited by Viacom International Media Networks (VIMN) for £450m (approximately $757m).
The transaction brings Viacom one of British television's biggest brands, and the only commercial public service broadcaster to consistently grow viewership share in recent years.
Channel 5's diverse programming slate is viewed by more than 80% of the UK population each month, benefits from the programming grid prominence associated with its public service broadcaster status, and will complement Viacom's popular pay TV networks, which connect with focused and valuable audiences.
"The acquisition of Channel 5 accelerates Viacom's strategy in the UK, one of the world's most important and valuable media markets," said Viacom President and CEO Philippe Dauman. "Channel 5's momentum is indisputable, with impactful programming, increasing popularity and a growing digital platform.
"Channel 5's management and employees have done an outstanding job building their brand and we are pleased to welcome them to our team. Viacom's global resources, technology and expertise will help Channel 5 develop even more compelling programming and provide content to consumers in exciting new ways.
"In addition, we will introduce our popular content to new UK audiences and create a comprehensive offering for our commercial partners on-air and on-line.
"This deal will dramatically increase Viacom's investment in content produced in the UK, which has a widely admired public service broadcasting culture and a globally influential production sector.
"We look forward to partnering with local producers to introduce more UK-created content to global audiences, and will continue to explore opportunities in the UK, both in the free-to-air and pay television markets."
Paul Dunthorne, Chief Operating Officer of Channel 5, said: "Since Northern & Shell's acquisition of Channel 5 in 2010, the financial and operating performance of the business has been transformed with improved audiences and content offering.
"The combination of Channel 5 with Viacom's global resources, technology and expertise adds further to the momentum of the business and offers numerous exciting opportunities for the channel's future."
The acquisition of Channel 5 builds on Viacom's long and successful track record of investment in the UK. The company launched MTV in the market in 1987, followed by Nickelodeon in 1993 and Comedy Central in 1995, growing to more than 20 branded TV networks currently on air, including BET, VIVA and VH1.
Viacom's continued growth resulted in it being the most successful international supplier of pay TV channels to the UK market in 2013. MTV enjoyed its highest ratings in eight years in 2013, while Nickelodeon and Comedy Central were also among the top networks for their target demographics.
(CD)