BBC Worldwide ventures into Lonely Planet
Last Updated: Monday, October 1, 2007 | 11:25 AM ET
CBC News
BBC Worldwide, the commercial arm of Britain's public broadcaster, has bought the budget travel guide publisher Lonely Planet, it announced Monday.
Lonely Planet, based in Melbourne, Australia, was founded in 1972 by Tony and Maureen Wheeler after they travelled the hippie trail through India.
The Wheelers will retain 25 per cent of the publisher, which issues about 500 titles in several languages and also has ventures on television and the internet.
Another partner, John Singleton, who held a share of the previously privately owned company, has sold his entire stake to BBC Worldwide.
The Australian Broadcasting Corp. reports the value of the deal at $221 million Cdn.
BBC Worldwide bought Lonely Planet as part of ambitious global expansion plans that include increasing holdings in the United States and Australia.
The headquarters of the publisher, famous for its guides aimed at the footloose, budget-conscious traveller, will remain in Melbourne.
Tony Wheeler said the couple sold the business to keep it expanding in growth areas such as the internet and television.
"We realized we're obviously no longer just a book publisher. As far as the reality of the business is, a lot of it is now digital — our website and other things we do, from photo libraries to TV production," he said.
"The value of the brand, the value of Lonely Planet is really eventually going to be much more on that side of it."
Lonely Planet provides BBC Worldwide with an opportunity to share audiences for some of its ventures, said Étienne de Villiers, a non-executive director and chairman of BBC Worldwide.
"We are are all convinced that the association will strengthen Lonely Planet's visibility and growth potential, particularly in the digital arena, as well as providing their users access to the wide range of BBC content which connects with their interests," said de Villiers, who was quoted on the BBC.
The BBC plans to build the Lonely Planet online presence, which is already attracting 4.3 million hits a month.
BBC Worldwide manages the broadcaster's global TV sales and global broadcast affiliates and owns both digital media and consumer magazines.
With files from Australian Broadcasting Corp.Share Tools
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