This is taken from TheGuardian

Radio Times up for sale in BBC Magazines deal
BBC Worldwide looking to sell a majority stake in BBC Magazines, publisher of Radio Times, Top Gear and other titles
by Mark Sweney and James Robinson
guardian.co.uk, Friday 24 September 2010 10.50 BST

The BBC is seeking a commercial partner to take a majority stake in its magazines business, in a move that could see flagship title the Radio Times being sold off after nearly 90 years.

Yesterday the BBC Trust, the corporation's governing body, agreed on the final details of the process for selling a majority stake in BBC Magazines, a subsidiary of the corporation's commercial arm, BBC Worldwide.

Other titles that will form part of the sale include Top Gear, Gardener's World, Good Food and Lonely Planet. At least 30 bidders are already believed to have expressed an interest in the business, the fourth largest UK magazine publisher in terms of circulation.

BBC Worldwide is looking for one commercial partner to take a majority stake of up to 85% in its magazine business. Previous sales of its BBC Audiobooks and BBC Books operations have seen the corporation retain a stake of just 15%.

The commercial partner may buy individual titles outright, take a majority stake, or do a licensing deal with the BBC.

The Radio Times, which had a circulation of 947,131 in the six months to the end of June, is the most profitable title in the portfolio and could be sold off entirely, bringing an end to the BBC's 87-year association with the listings magazine.

Launched in 1923 as "the official organ of the BBC", the Radio Times was initially run as a joint venture with a commercial publisher. The BBC took over editorial control two years later and by 1937 the entire Radio Times operation had moved in-house, where it has remained ever since.

The Radio Times is a powerful promotional tool for the corporation's TV and radio shows and has a close association with the BBC brand. The sale of the title would be accompanied by strict conditions on editorial content.

In an internal email to staff today, Peter Phippen, the managing director of BBC Magazines, said that management hoped to have found a commercial partner for the business by the end of March, but warned that the process may take longer.

A BBC Trust spokesman said: "Following discussions with the [BBC] executive, the [BBC] Trust has agreed that [BBC] Worldwide can explore with the market options for the future of its magazines business as long as it does so without making any binding commitment at this stage. The trust's focus will be on delivering the best deal for licence fee payers and any specific proposal would require our formal regulatory clearance."

BBC Worldwide, which reported record profts of £145.2m for the year to the end of March, will send an information memorandum to potential buyers next week.

John Smith, the BBC Worldwide chief executive, wants to invest heavily in digital expansion, launching a range of iPad applications and spending on other online innovations to increase profits.

However, Smith is restricted to a loan facility of £218m, and wants to sell the magazine division to fund that growth. Expansion in the UK is difficult because the BBC has given an undertaking to cut back on direct competition with commercial rivals.

As a result, Smith is understood to be focusing on overseas expansion, particularly in the US, where the BBC has several hit shows – including the Strictly Come Dancing spin-off, Dancing with the Stars.

"As BBC Worldwide is restricted by constraints in both its borrowing capability and editorial remit, as well as having other strategic priorities, we intend to explore possible partnership opportunities to help us ensure the business is properly funded for the task ahead," the company said in July.

BBC Magazines reported that revenues fell by 1.3% to £168.3m in the year to the end of March. However, profits rose by 13.6% to £18.4m.

Circulation of the total portfolio of BBC Magazines titles rose 3.1% year on year in the first half of 2010, according to the most recent ABC figures.

Star performers included Lonely Planet magazine, which was up 34.4% year on year; BBC Countryfile magazine, up 22%; and CBeebies Art, up 19%. Disappointments included In the Night Garden, which was down 25.2% year on year; Top of the Pops, down 12.6%; BBC Good Food, down 5.4%; and Top Gear magazine, down 5.2%.