BBC Worldwide, the commercial arm of the BBC, announced that it has agreed to sell the travel guide business Lonely Planet to NC2 Media, following approval from the BBC Trust. BBC Worldwide will receive AU$75m (£51.5m) for 100% of Lonely Planet with AU$60m (£41.2m) paid on completion and AU$15m (£10.3m) paid in one year’s time.
The move follows the BBC’s commercial review last year which set out the company’s strategy to focus on BBC brands and promote the best of the corporation’s output globally.
BBC Worldwide has been exploring strategic options for Lonely Planet over the last year and was keen to find a new owner that could bring greater focus and capital to the business. NC2 Media, a U.S.-based media company primarily engaged in the creation, acquisition, and distribution of quality digital content and the development of the technologies, demonstrated a commitment to invest in Lonely Planet.
Paul Dempsey, Interim CEO BBC Worldwide, says, “We acquired Lonely Planet in 2007 when both our strategy and the market conditions were quite different. Since then, Lonely Planet has increased its presence in digital, magazine publishing and emerging markets whilst also growing its global market share, despite difficult economic conditions.
“However, we have also recognised that it no longer fits with our plans to put BBC brands at the heart of our business and have decided to sell the company to NC2 Media who are better placed to build and invest in the business. This deal begins a new chapter for Lonely Planet and signifies the end of one for BBC Worldwide.”
BBC Worldwide acquired 75% of Lonely Planet in 2007 for £88.1m and the remaining 25% in 2011 for £42.17m, for a total consideration of £130.2m. According to the company, during the time it has owned Lonely Planet, its annual revenue has grown from £810m in 2007 to £1.08bn in 2012 – with profit increasing from £111m in 2007 to £155m in 2012.
Lonely Planet is the world’s most successful travel publisher and has printed approximately 120 million books in 11 different languages. It is the number one travel guide book brand in the U.S., Australia and the UK, with more than 120 million unique users visiting its website every year and more than 11 million apps downloaded. Lonely Planet’s magazine franchise has expanded beyond the first UK edition to 14 international editions. However Lonely Planet’s financial performance has been impacted in recent years by the continued strength of the Australian dollar, the rapid consolidation of the publishing industry and a global recession which affected leisure travel.
