Aug. 15, 2011
KNOXVILLE, Tenn. - Scripps Networks Interactive Inc. (NYSE: SNI) and Virgin Media Inc. (NASDAQ: VMED; LSE: VMED)
have reached an agreement that will result in Scripps Networks Interactive acquiring Virgin Media's stake in UKTV, one
of the United Kingdom's leading multi-channel television programming companies.
Scripps Networks Interactive will pay approximately £239 million to purchase Virgin Media's 50-percent common equity
interest in the UKTV partnership and also will pay about £100 million to acquire the outstanding preferred stock and
debt owed by UKTV to Virgin Media. BBC Worldwide, the commercial arm and wholly owned subsidiary of the British
Broadcasting Corp. (BBC), is the other 50-percent stakeholder in UKTV.
Completion of the transaction is contingent on regulatory approvals in the Republic of Ireland and Jersey.
'UKTV is a significant opportunity for Scripps Networks Interactive to participate in a thriving multi-channel, dual
revenue stream media business in one of the world's largest television markets,' said Kenneth W. Lowe, chairman,
president and chief executive officer of Scripps Networks Interactive. 'Making a solid investment in UKTV and entering
into a strong partnership with BBC Worldwide reinforces our core international strategy which we believe will create
significant long-term value for our shareholders.'
Related to the transaction, Scripps Networks Interactive and BBC Worldwide are negotiating an agreement whereby,
after completion, BBC Worldwide would have the option, via a combination of cash and a package of digital rights for
UKTV, to increase its shareholding from 50 percent to a maximum of 60 percent. Scripps Networks Interactive's existing
voting rights and Board representation would be unaffected by this proposed arrangement, which would be subject to BBC
Executive and BBC Trust approvals.
Formed in 1997, UKTV attracts about 36 million viewers a month across its portfolio of 10 lifestyle, entertainment
and non-fiction (factual) programming channels. UKTV brands include Home, Good Food, Dave, Watch, GOLD, Alibi, Eden,
Blighty, Yesterday and Really. UKTV also operates complementary websites for each channel brand.
UKTV channels air award-winning shows from the BBC in addition to original programming. All of the UKTV channels are
available on Sky Digital and Virgin Media. Dave and Yesterday also are available on Freeview.
John Smith, chief executive, BBC Worldwide, said: 'The launch of UKTV in 1997 created a new secondary platform for
content from the BBC and U.K. independents that has delivered great value back to all stakeholders. We thank Virgin
Media for the part it has played in developing the business into one of the most successful pay TV companies in the
'We welcome Scripps Networks Interactive as our new partner and look forward to working with them to open up further
avenues to success. The new agreement we are developing will bring benefits to UKTV's audiences in the way they can
consume content and will help to sustain UKTV's track record of growth. It will create the opportunity to drive further
value from digital rights on behalf of our stakeholders, particularly our shareholder, the BBC.'
Neil Berkett, Virgin Media's chief executive officer, said: 'We are pleased to have reached this agreement with
Scripps Networks Interactive. This will allow us to continue to focus on providing a transformative experience for our
customers by developing our core strategic strength - the U.K.'s leading digital network - alongside our leading
About BBC Worldwide Ltd
BBC Worldwide Limited is the main commercial arm and a wholly owned subsidiary of the British Broadcasting Corp.
(BBC). The company exists to maximize the value of the BBC's assets for the benefit of the U.K. licence fee payer and
invest in public service programming in return for rights. The company has six core businesses: Channels, Content &
Production, Sales & Distribution, Consumer Products, Brands, Consumers & New Ventures and Magazines, with digital
ventures incorporated into each business area. In 2010/11, BBC Worldwide generated profits of £160 million on sales of
£1158 million and returned £182m to the BBC.
About Virgin Media Inc.
Virgin Media is the first provider of all four broadband TV, mobile phone and home phone services in the U.K. The
company delivers ultrafast broadband connections to over half of all U.K. homes, with speeds up to 100Mb, and is
expanding this cable network - the result of a multi-billion pound investment - to reach thousands more people across
the country. Virgin Media has developed the most advanced interactive television service, bringing together broadcast
TV, thousands of hours of on-demand programming and the best of the web in a single set-top box powered by TiVo. The
company was the first to offer HDTV and 3D on demand to millions of U.K. households. Virgin Media also operates the most
popular virtual mobile network in the U.K. which, when launched, was the world's first such mobile phone service. It is
also one of the largest fixed-line home phone providers in the country.
About Scripps Networks Interactive Inc.
Scripps Networks Interactive is one of the leading developers of lifestyle-oriented content for television and the
Internet, where on-air programming is complemented with online video, social media areas and e-commerce components on
companion websites and broadband vertical channels. The company's media portfolio includes popular U.S. lifestyle
television and Internet brands HGTV, Food Network, Travel Channel, DIY Network, Cooking Channel and country music
network Great American Country.
This press release contains certain forward-looking statements related to the company's businesses that are based on
management's current expectations. Forward-looking statements are subject to certain risks, trends and uncertainties,
including changes in advertising demand and other economic conditions that could cause actual results to differ
materially from the expectations expressed in forward-looking statements. All forward-looking statements should be
evaluated with the understanding of their inherent uncertainty. The company's written policy on forward-looking
statements can be found on page F-3 of its 2010 Form 10-K filed with the Securities and Exchange Commission.
The company undertakes no obligation to publicly update any forward-looking statements to reflect events or
circumstances after the date the statement is made.
Scripps Networks Interactive Inc.
Media & Investors
Mark Kroeger, Scripps Networks Interactive Inc., 865-560-5007
Charlotte Elston, BBC Worldwide +44 (0)208 433 3995
Virgin Media Inc.
Michelle Gordon, +44 (0)20 7909 3292
Richard Williams, +44 (0)1256 753037
Vani Bassi, +44 (0)1256 752347