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Venus Williams - Wimbledon 2007
Venus Williams: Wimbledon 2007 coverage was shot using BBC Resources' outside broadcast facilities. Photograph: Getty
Venus Williams: Wimbledon 2007 coverage was shot using BBC Resources' outside broadcast facilities. Photograph: Getty

BBC Resources sell-off to begin

This article is more than 16 years old

The BBC will officially kick off the process of offloading its BBC Resources subsidiary tomorrow when it places advertisements offering the business for sale.

The corporation has said it hopes to complete a sale of the commercial arm, which deals with outside broadcasts, studios and post-production, by the end of March next year. The division's costume arm will not be part of a sale.

However, any sale will still be subject to the necessary approvals by the BBC's executive board and the BBC Trust.

Adverts for the business will be placed in national newspapers and the trade press.

BBC Resources is one of the UK's leading providers of broadcast production facilities and services, and consists of three divisions - BBC Outside Broadcasts, BBC Studios and BBC Post Production.

It has annual revenues of £125m - more than 80% of which comes from the BBC - and employs 1,300 staff.

The sale comes as a result of the BBC's commercial review, which concluded that the corporation should only own businesses that "exported or exploited" the BBC brand or content.

It added that while the services provided by BBC Resources were "vital" to the BBC, they did not need to be owned by the corporation.

As part of the new strategy, the BBC has already sold BBC Broadcast and BBC Technology.

John Smith, the BBC Worldwide chief executive and BBC board sponsor for the sale, said: "We are committed to getting the best value for the BBC and licence fee payers, whilst putting staff interests at the heart of the process."

The BBC said in a statement: "The BBC believes that the combination of BBC Resources under new commercial ownership and a continued partnership with the BBC will mean the corporation can leverage its strong relationship and heritage with BBC Resources.

"A new owner will provide the profitable and cash generative business with further opportunities for growth, which are not available whilst it is owned by the BBC, balanced with the stability of ongoing contracts with the BBC.

The BBC said it recognised the "importance" of staff in the sale process and said it would "fully consult" with the unions and "work closely with staff to achieve a smooth transition during this process".

Broadcasting unions have previously expressed concern over the proposed sale.

The BBC wanted to take steps towards selling BBC Resources two years ago, but put its plans on hold following a deal brokered with broadcasting union Bectu.

Under an arrangement to prevent strike action in June 2005, the BBC gave an undertaking that it would not make any preparations to sell BBC Resources until January 2007, with no full sale allowed before July of this year.

BBC Resources was incorporated as a separate subsidiary in 1998 and was the first of the corporation's commercial business-to-business divisions to be established.

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