Cable MSO Liberty Global International is assessing its first-round bids for pay-TV unit Chellomedia, reports the FT, suggesting that second-round winning bids are likely to value the operation at around $1 billion.
It is understood that bids have been received from media companies and private equity companies, including Scripps Networks Interactive, Turner Broadcasting System and Discovery Communications.
LGI decided to unload the business as it accounts for a small portion of the company’s roughly $10 billion in annual revenue derived mainly from its broadband cable networks where it wants to concentrate its attention.
Chellomedia’s revenue last year was $514 million, from sales to Liberty Global operators as well as third parties.
Liberty Global spent $23.3 billion to buy Virgin Media earlier this year, but was unsuccessful in its attempts to buy Kabel Deutschland in Germany.