Virgin Media selling TV stake to reduce debt

UKTV has 10 channels including Dave – aimed at male viewers – and Gold, which shows re-runs of classic television shows. It attracts around 36.5 million viewers each month.

The company was formed in 1997 as a joint venture between Virgin Media and BBC Worldwide, which is the BBC's commercial arm.

It is understood that Virgin is looking to raise at least 350m from the sale of the stake which it would use to pay down debt.

Alongside Gold and Dave, UKTV's other channels are Alibi, Eden, Blighty, Yesterday, Home, Really, Good Food and Watch.

Virgin has reportedly asked investment banks UBS and Goldman Sachs to begin the hunt for a new owner for the 50 per cent stake.

BBC Worldwide – which has first refusal over Virgin's stake – is regarded as the front runner, although analysts believe that Channel 4 and rival BSkyB could also look at the business.

In June BSkyB bought television channels Living and Bravo from Virgin as part of a smaller 160m deal.

A Virgin Media spokesman said: "We do not comment on market speculation."

Virgin Media was formed in March 2006 through the merger of the UK's then two largest cable companies NTL and Telewest and the subsequent takeover of Virgin Mobile in July 2006. It is now listed in New York and London and is 6.5 per cent owned by Virgin entrepreneur Sir Richard Branson.