Channel 5 Takeover - Guardian: Discovery withdraws bid for Channel 5

The Guardian is today reporting that Discovery Communications has withdrawn its bid for Richard Desmond's Channel 5, which is thought to leave MTV owner Viacom as one of the few remaining potential buyers.
US factual broadcaster Discovery made a bid earlier this week in the second round of the acquisition process, but in the latest twist in the long-running Channel 5 sale saga has now dropped out of the running, MediaGuardian understands.

According to sources Discovery's offer was thought to be in the region of £250m to £300m, and was made in association with BSkyB.

However, it is thought that BSkyB's involvement was limited to handling Channel 5's advertising sales on behalf of Discovery, rather than taking an equity stake in the free-to-air broadcaster.

Sky already handles ad sales for Discovery's UK pay-TV channels.

The Discovery bid was markedly below the £700m price tag that Northern & Shell media group and Channel 5 owner Desmond reportedly wants.

Viacom – which owns including MTV, Nickelodeon and Comedy Central – is also said to have made an offer for Channel 5, again with involvement from BSkyB handling the broadcaster's ad sales.

Sky already sells advertising for Viacom's UK channels.

Price is thought to be have been the key reason for Discovery dropping out.