tv travel shop in takeover talks

TV TRAVEL SHOP is the target of a takeover bid by American entertainment and direct-sell company USA Networks, the satellite channel has revealed.

The company has held talks with USA Networks, which is also in the middle of acquiring a stake in on-line agency Expedia.

The admission comes just weeks after managing director Tony Wheble and TV Travel Shop founder Dennis Strauss left the company.

In their absence TV Travel Shop’s other founder and deputy chairman Harry Goodman is understood to have taken on the company’s day-to-day management.

TV Travel Shop chief executive officer Stephen Welton said: “A lot of media and travel companies have approached us to see if they could take a stake and I suppose, as we are owned by venture capitalists, it is possible we could be sold.

“One company we’ve had talks with is USA Networks.”

Welton hinted a takeover is not the only option on the table. “It is no secret we are interested in expanding into other countries. One way to raise capital is through a joint venture, as we have done in Germany with TUI, and we have had conversations with USA Networks about whether we would be able to help USA Networks set up a travel channel.”

However, industry sources claim TV Travel Shop’s German operation is draining funds from its British counterpart. Additionally, Kuoni and Telewest, which both have stakes in the company, are rummoured to be trying to sell their shares. Neither was available to comment. Sky TV is also looking at opportunities in travel retail and Thomas Cook recently started a rival channel.

Last July USA Networks announced its intention to acquire 75% of Expedia and launch a cable television operation called USA Travel Channel. It simultaneously revealed plans to acquire National Leisure Group, a major player in the American on-line package holiday and cruise markets.

Meanwhile, TV Travel Shop has signed a deal with the Online Travel Corporation to sell city breaks, short breaks, insurance, scheduled flights and hotel accommodation.