Fledgling Birmingham local TV station BLTV is holding talks with ‘several interested parties’ over its future amid rumours of a ‘potential change of shareholding’.
The long awaited city-based local TV operation is still thought to be struggling to raise the finance required to get it off the ground – more than a year after being awarded the licence.
Speculation is mounting in Birmingham media circles that the licence is to be sold on to a new majority shareholder – but chief executive Debra Davis insists the station’s target remains an April 2014 launch.
She confirmed no agreement was in place for studio premises although discussions had been held with ‘property people.’ She declined to discuss staffing appointments.
The clock is ticking for BLTV, with a November 2014 deadline for the launch of an operation which has been in the embryonic stages for more than five years.
But the plans have been disrupted by controversy, including calls by rivals for an investigation into the awarding of the licence and the recent departures of interim chairman Derek Inman and managing director Danny Brainin.
Rival bidders YOURTV and Made Television both issued statements of concern last year in the wake of the granting of the licence to BLTV – a firm incorporated just 24 hours before the Ofcom deadline of August 13 2012.
The Post revealed that Ms Davis emailed consultants in her capacity as chief executive of City TV Broadcasting on Friday August 17 2012 informing them that the company had pulled out of the bid due to insufficient funds. But only four days previously, on Monday August 13, Ms Davis had sent a round robin e-mail to supporters and associates telling them the City TV Broadcasting application had been safely submitted ‘just before’ the Ofcom deadline.
Ms Davis later said the TV company had ‘followed standard business practice.’
In September 2013 it was revealed that both interim chairman Derek Inman, a former Midland-based BT executive, and managing director Danny Brainin had left BLTV.
In July Mr Inman had issued a statement which rubbished claims on a Toronto website suggesting that the UK’s ‘first live local channel’ was being launched in Birmingham by Canada-based Channel Zero.
Mr Inman said at the time: “BLTV has been approached by various parties – investors and strategic partners – interested in the value and potential of our licence, including Channel Zero. No decisions have been taken with Channel Zero and there is no agreement in place.”
An updated statement today from Ms Davis, former Birmingham City Council Director of Communications, said: “Broadcasting is a heavily regulated industry. We talk to Ofcom on a regular basis.
“Like any business shareholding changes occur in the normal course of events and as local TV is a small business then this is to be expected. We are in discussions with several interested parties.
“The more important question for Ofcom is that programming commitments remain the same, that the ethos of the business is in line with the application and that any shareholder meets the Ofcom criteria. There is a change process licensees have to meet.”
An Ofcom spokesperson said: “In principle local TV licensees are permitted to change their shareholding. Before this happens Ofcom would need to check the details of any deal first to establish whether there would be any implications for the local TV licensing process.”
