GB News sheds half its value as Discovery sells off stake
Jamie Nimmo
Sunday October 02 2022, 12.01am, The Sunday Times
The valuation of GB News has more than halved after Discovery, the American broadcast giant, dumped its stake in the news channel at a hefty discount.
Discovery, which has merged with Warner Bros, offloaded its holding in August for £8 million, having initially bought its 25 per cent stake for £20 million, according to accounts filed at Companies House by Discovery’s British division.
The share sale values the right-of-centre news channel, whose presenters include the former Ukip leader Nigel Farage and former ITV star Eamonn Holmes, at £32 million, compared with £80 million when it launched in June last year.
The Brexiter hedge fund tycoon Sir Paul Marshall and Legatum, the investment company founded by New Zealand billionaire Christopher Chandler, snapped up Discovery’s stake and invested more money into the company. They invested alongside Discovery upon the channel’s launch, which was marred by technical glitches, lighting problems and executive departures. The veteran BBC broadcaster Andrew Neil quit as GB News chairman three months after the launch, claiming it “would have killed me if I’d carried on” as he criticised its approach and shift to the right as it chased more viewers.
GB News said it had “successfully completed a £60 million series B raise. The company is investing heavily in British journalism and is experiencing growth across all its audience platforms.”
Warner Bros Discovery did not comment.