US media should open up to UK, says Viacom chief

Sumner Redstone, the 79-year-old chief executive of Viacom, the world's most valuable media company, met Tony Blair yesterday and said the US should open its broadcasting sector to British companies.

Mr Redstone later told a Royal Television Society dinner in London that he was interested in ITV but Viacom had made no decision on a bid yet.

It was the first meeting between the Prime Minister and the US media mogul, who is visiting several European countries. Mr Redstone said he "congratulated" Mr Blair on the measures of the Communications Bill that liberalise the media sector. He is likely to have stressed that British television programming need not fear the loss of local content under any Viacom takeover.

"I told Tony Blair that I agree with the proposed Bill because I believe in deregulation," Mr Redstone said at the RTS event. "I believe in reciprocity. If we can own you, you can own us," he added.

Under the Communications Bill, expected to be in next week's Queen's Speech, US companies will be allowed to buy British broadcasting assets for the first time.

Mr Redstone, who has run the business that is now called Viacom for nearly 50 years, said he was "intrigued" by the unexpected ability to buy ITV: "Obviously, we were intrigued when the news broke about the UK's proposed new broadcasting law that could allow even Americans to own broadcast businesses, including ITV."

Given the difficulties affecting the other media giants ­ AOL Time Warner, Vivendi Universal and Bertelsmann ­ Viacom is seen as the most likely bidder for ITV. A special provision in the Bill bars Rupert Murdoch's News Corporation from owning a significant stake in ITV.

On the stock market, Viacom is now the world's most highly valued media company. In the UK, it employs 10,000 people, with businesses including MTV, CBS, Blockbuster, Paramount channels and outdoor advertising. "We have no plans for an acquisition of ITV ­ or any other UK broadcast asset ­ at the moment. But we'll continue to monitor developments very closely. So, as they say in our business ­ 'stay tuned'," Mr Redstone said.

"As good as ITV is, Paramount and CBS were once-in-a-lifetime opportunities. ITV would be a great opportunity. We haven't yet passed up on it, [but] we're not ready to say we're buyers but we're not ready to say we're not."

He also had a mild swipe at his "friend" Mr Murdoch, noting "Rupert is inclined to be a little aggressive. We'd hate to see him become the gatekeeper". He also stressed Viacom's commitment to producing original, local content.

While praising Mr Murdoch's BSkyB platform, Mr Redstone said: "At Viacom, we believe that people tune in to programmes, not platforms. And viewers are loyal to brands, not distributors. As a content- led company and corporate culture, we put editorial independence first, in every market."