ITV facing £160m loss on Friends Reunited?

 

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By Stuart Turton

Posted on 28 Jul 2009 at 10:55

ITV is considering selling off social-networking site Friends Reunited for just £15 million, according to reports.

The broadcaster paid £175 million for Friends Reunited in December 2005. Since then, the site's been overshadowed by rivals including Facebook and MySpace and has been hit hard by the advertising slowdown.

According to the Mail Online, ITV is in negotiations with entrepreneur Peter Dubens to sell the site for only £15 million - a massive £160 million loss on its investment.

Dubens was the man who sold broadband provider Pipex to Tiscali for £210 million in 2007.

The deal comes as ITV attempts to cut costs after recording a £2.7 billion loss last year. Despite the downturn, ITV still made £18 million from Friends Reunited in 2008, though this was down from £22 million in 2007.

ITV says it does not comment on rumour or speculation.