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Incoming BBC chair Samir Shah is searching for a buyer for his production television company to avoid being forced to wind it down ahead of his formal appointment to head the board of the national broadcaster.
Shah must give up his control of Juniper, the 40-year-old TV production company to avoid a conflict of interest with his new role, according to people familiar with the matter.
Juniper makes TV shows for a variety of broadcasters, such as Channel 4 and Netflix, but has extensive links to the BBC, producing shows aired by the corporation, such as Politics London.
Shah acquired Juniper in 1998 from Michael Wills, who founded the company in 1984 and sold the group after his 1997 election as a Labour MP. Shah will also need to leave the company to return in his new role heading the BBC’s board.
The TV veteran was accused of a conflict of interest for retaining ownership of Juniper as a non-executive director of the BBC board between 2007 and 2010, but he was able to hold on to the company.
However, his appointment as chair of the corporation has made his position at Juniper impossible, according to people familiar with the situation. His annual salary as BBC chair will be £160,000. The BBC board meets at least 11 times a year.
One person familiar with the situation said that he was “exploring a number of ways forward from selling the company to winding it up”.
Shah’s formal arrival as chair of the national broadcaster has been delayed until the next meeting of the privy council, which will rubber stamp his appointment. It is expected to take place this month, which would allow Shah to join the board at the start of March.
The BBC needs its new chair to be in place before announcing its new strategy on the future of the corporation, which is expected to focus on its shift to digital channels, people close to the process said.
As part of the strategy update, the broadcaster is expected to continue to slim down its operation because of a cash crunch due to the freeze in licence free income over the past two years.
One person familiar with the process said Shah is likely to struggle to sell his business given the pressures in the industry, with broadcasters such as Channel 4 being forced to cut back on commissioning new shows. Shah declined to comment.
This week, ITV said a sharp decline in advertising revenues meant it would freeze recruitment and tightly control spending in the first half of 2024.
