Flextech 1990-2000
Flextech, was formerly an oil services group, previously being floated as an energy investment company back in 1983. It was not until the arrival of chief executive Roger Luard in 1986 that its focus began to change and becoming a TV programme provider. Its first media acquisition was in 1990 with a 20% stake in programme producer/distributor HIT Communications followed by acquiring a stake in the Children's Channel. By 1992, Flextech was a media-only group, having built up stakes in local cable operators selling off its non core asset.
In 1993 talks were held with Tele-Communications Inc (TCI- the Denver-based US cable TV giant) Under the original terms of the proposed deal, Flextech would have acquire TCI's European programming business in exchange for shares. By Christmas the deal was complete with TCI acquired 40-60% of Flextech while flextech acquire 100% of Bravo, 25% of UK Gold, and 31% of UK Living and 25% of the Children's Channel which increase it share it that channel By The summer flextech entered in agreement with International Family Entertainment (IFE), to hold 39% stake in The Family Channel and to build upon its Television portfolio.Roger Luard, chief executive officer said, "We are delighted to be involved with one of the United States' leading and most successful basic cable networks, and we look forward to cooperating with IFE in opportunities for expansion into Europe and beyond. The channel was announced as Premier family entertainment network in the United Kingdom. Maidstone studios, become the station operation base, which also benefited flextech, as the facility operaeted the channels uplink, playout and management operations.
In February 1994 Flextech shareholders approved a deal in which Flextech absorbs the European programming interests of United Artists European Holdings, In return UAEH's US parent, TeleCommunications Inc (TCI), received 60 per cent of the enlarged Flextech. With days of the deal Flextech brought a 20% stake in HTV for £27million. Chris Rowlands, HTV's chief executive, said The deal was a tremendous opportunity for both companies. 'We will make programmes for Flextech and provide services for them which at the moment they have to buy in. Within a year the stake was transferred to Scottish Television as part of its deal to acquire a 20% stake in Scottish Television. As part of the deal Flextech agreed to license the rights to over 125 hours of drama and documentary features from STV's library will enter into a production output agreement to commission television programs from STV with a minimum total value of 6.0 million pounds over three years.
Talk were held with BSkyB in the spring off 1996, over a potential merger of the two companies' pay-TV channels, with the aimed of a wholesale consolidation of the subscription market, which would have save costs and created a dominant supplier of programmes in the UK subscription market and Europe. The deal come to nothing but two years later both companies agreed a which allowed Flextech television channel to broadcast on sky new digital platform. Flextech started to strengthen its portfolio when it acquired full control over The Family Channel and Maidstone studies. A new independent sales house was created to managed air time of over 14 channels. In 1993 Flextech gain its first stake in UK Gold after acquiring Tele-Communications' (TCI) TV interest in Europe, in 1996 its started discussions about increasing its stake, to gain full control, at that point, Flextech held 27% with Cox (38%), BBC (20%) and Pearson (15%), by the Auttum Flextech acquired Cox and Pearson stake thus give flextech 80% in UK Gold.
During 1996 talks began between Flextech and the BBC about a partnership to launch a new range of entertainment channels which had access to the BBC's entire programme library. The deal was signed in March 1997 when the BBC and Flextech unveiled their new venture, which included BBC Showcase, an entertainment channel; BBC Horizon, documentaries; BBC Style, lifestyle; BBC Learning, for schools, and BBC Arena, for the arts, plus three other channels including BBC Sport', BBC Catch-Up, for repeats of popular programmes within days of their original transmission, and BBC One, a TV version of Radio One. Initially, it was assumed that the new channels would be BBC-branded but Flextech wanted the channels to have advertisements. The BBC argued that BBC-branded services in the UK should not carry advertising, and thought that this would undermine the rationale of the licence fee in the UK. A compromise was reached when the BBC launch BBC Choice and BBC Learning (later renamed BBC Knowledge shortly before launch) on its own while the remainder of the deal was past to BBC Worldwide controlled 50/50.
Flextech agreed to acquire Minotaur International for around $6.5 million in 1999 Minotaur International was responsible for international sales of most programmes commissioned by the network. In 2007, Target Entertainment Group acquired Minotaur International and formed strategic alliances with Virgin Media Television to act as their preferred distribution partner in 2007.
In 1998 chief executive Roger Luard died, with Adam Singler becoming chief executive. In early December 1999, talks were configured about a merger between Telewest and Flextech, By 17 December 1999 Merger was agreed upon which created a £10.5bn media giant with Telewest shareholders would own 80% of the new group, while Flextech shareholders would own 20% The two company fully merged and completed on 19 April 2000.
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