BBC Worldwide, the commercial arm of the BBC, is selling travel guide business Lonely Planet for £50 million to US company NC2 Media at a loss of £80 million (€99m). The BBC acquired 75 per cent of Lonely Planet in 2007 for £88.1 million and the remaining 25 per cent in 2011 for £42.17 million, for a total consideration of £130.2 million.

The BBC was widely criticised form making the buy, in 2009, a Culture Media and Sport Select Committee said the purchase expanded an area “where the BBC has no, or very limited existing interests”.

The Trust has ordered the BBC Executive board to review “lessons learnt”.

The Lonely Planet suffered from the prolonged global recession and the Australian dollar appreciating to 58 per cent against the UK pound – 80 per cent of Lonely Planet’s revenues are generated from foreign currency.

The sale follows the corporation’s commercial review last year which set out the company’s strategy to focus on BBC brands and promote the best of its output globally.

Diane Coyle, Trust vice chairman and chair of the Strategic Approvals Committee, said: “The Trust’s strategy for Worldwide now is to focus on BBC programme content, and Worldwide would not make this sort of acquisition again.”

Other posts by :

1. AST SpaceMobile: “Good for indoor reception”
2. EchoStar booms on SpaceX holding
3. Norway wants a satellite constellation
4. Crossroads backs AST SpaceMobile
5. FCC examines SpaceX’s 15,000 sat-constellation plan
6. EchoStar: “Severe uncertainty” led to spectrum sales
7. Netflix gets downgrade on Warner Bros move
8. UK trims Orbex investment
9. Euro-bank sets up €500m space fund

Categories: Articles, Business, M&A