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| Version 5 | Version 6 |
|---|---|
| Offer made for stake in Setanta | Offer made for stake in Setanta |
| (about 1 hour later) | |
| US investor Len Blavatnik is offering £20m in return for a 51% stake in the troubled Irish pay-tv channel Setanta. | US investor Len Blavatnik is offering £20m in return for a 51% stake in the troubled Irish pay-tv channel Setanta. |
| Access Industries, which is owned by Mr Blavatnik, said it had submitted a proposal but gave no further details. | |
| Other investors have signalled they may be prepared to put in a further £20m, the BBC has learned. | |
| Setanta has been hit by a lack of subscribers and by only winning one of the new English Premier League TV packages starting in 2010/11. | Setanta has been hit by a lack of subscribers and by only winning one of the new English Premier League TV packages starting in 2010/11. |
| Mr Blavatnik is also involved with Top-Up TV, the pay-TV channel on Freeview. | Mr Blavatnik is also involved with Top-Up TV, the pay-TV channel on Freeview. |
| His plan has a reasonable chance of succeeding, according to the BBC's business editor Robert Peston. | |
| If other investors put in a further £20m or so, it may be enough to refinance the business, he says. | |
| SETANTA'S SPORTS English Premier LeagueScottish Premier LeagueBlue Square PremierIPL cricketUS PGA Tour golfBoxing Q&A: Setanta and you Why Setanta Sports is in trouble Your comments | SETANTA'S SPORTS English Premier LeagueScottish Premier LeagueBlue Square PremierIPL cricketUS PGA Tour golfBoxing Q&A: Setanta and you Why Setanta Sports is in trouble Your comments |
| In a statement, Access Industries said: "The Access proposal is subject to a number of preconditions being met. Access believes that this proposal would secure the the future of the broadcaster for customers, football and employees." | In a statement, Access Industries said: "The Access proposal is subject to a number of preconditions being met. Access believes that this proposal would secure the the future of the broadcaster for customers, football and employees." |
| Sources close to Setanta said that it had received an offer for the majority of the company, which the board was recommending, although it was subject to a closer look at the company's accounts. | Sources close to Setanta said that it had received an offer for the majority of the company, which the board was recommending, although it was subject to a closer look at the company's accounts. |
| Toby Syfret from Enders Analysis said Mr Blavatnik's involvement with Top-Up TV meant that he would not want to see Setanta go under. | Toby Syfret from Enders Analysis said Mr Blavatnik's involvement with Top-Up TV meant that he would not want to see Setanta go under. |
| "Top-Up TV is one means by which Freeview subscribers can get Setanta. They either go to Setanta directly or through Top-Up TV. | "Top-Up TV is one means by which Freeview subscribers can get Setanta. They either go to Setanta directly or through Top-Up TV. |
| "So it's very important for Top-Up TV that Setanta manages to survive in good shape," he said. | "So it's very important for Top-Up TV that Setanta manages to survive in good shape," he said. |
| Mounting debts | Mounting debts |
| Mr Blavatnik, who works with the former boss of BSkyB David Chance, has not been immune from the fall-out of the credit crisis. | Mr Blavatnik, who works with the former boss of BSkyB David Chance, has not been immune from the fall-out of the credit crisis. |
| A huge petrochemicals maker he backed, LyondellBasell, has collapsed, meaning big losses for its creditors, which include Royal Bank of Scotland. | A huge petrochemicals maker he backed, LyondellBasell, has collapsed, meaning big losses for its creditors, which include Royal Bank of Scotland. |
| [Mr Blavatnik's] hope is that - at the very least - his intervention will buy Setanta some time Robert Peston, BBC business editor Read Robert's blog | [Mr Blavatnik's] hope is that - at the very least - his intervention will buy Setanta some time Robert Peston, BBC business editor Read Robert's blog |
| Setanta, which shows cricket, golf and rugby union as well as football, has about 1.2 million subscribers. | Setanta, which shows cricket, golf and rugby union as well as football, has about 1.2 million subscribers. |
| But this is only about 60% of the number it needs, according to analysts, and the company is losing up to £100m a year. | But this is only about 60% of the number it needs, according to analysts, and the company is losing up to £100m a year. |
| Setanta needs to pay £30m that is due to the English Premier League and has already failed to pay the Scottish Premier League £3m it owes in television rights money. | Setanta needs to pay £30m that is due to the English Premier League and has already failed to pay the Scottish Premier League £3m it owes in television rights money. |
| On Wednesday, Setanta confirmed it had stopped taking on new customers. | On Wednesday, Setanta confirmed it had stopped taking on new customers. |
| The company has been holding urgent talks in an attempt to secure its future. An approach to rival broadcaster BSkyB failed, while Walt Disney-owned sports network ESPN denied speculation on Thursday that it would buy Setanta. | The company has been holding urgent talks in an attempt to secure its future. An approach to rival broadcaster BSkyB failed, while Walt Disney-owned sports network ESPN denied speculation on Thursday that it would buy Setanta. |
| Under the current UK broadcast deal for the English Premier League, which lasts for one more season, BSkyB holds four packages of rights to show live matches - a total of 92 games - while Setanta has the other two packages, which cover 46 games. | Under the current UK broadcast deal for the English Premier League, which lasts for one more season, BSkyB holds four packages of rights to show live matches - a total of 92 games - while Setanta has the other two packages, which cover 46 games. |
| However, for the TV deal starting in 2010/11 Setanta only won the rights to show one Premier League package of 23 games per season. | However, for the TV deal starting in 2010/11 Setanta only won the rights to show one Premier League package of 23 games per season. |