Richard Desmond The media tycoon sealed his takeover of Channel Five last night, in a deal worth £103.5m.

The deal was sealed with immediate effect, giving ownership to Northern & Shell, the publishing group owned by Richard Desmond. “This is a major acquisition and a long-term project,” said Richard Desmond, who said that he would “invest heavily in talent and content both in the programming we already have and in home-grown programming”.

Richard Desmond went on to say that Coronation Street, The X Factor and Panorama were all programmes he would like the channel to broadcast.

Asked if he was asking the BBC to make shows for his network, he said: “Well, why not, why not? Why can’t we have Panorama on Channel Five? It’s a jolly good programme.”

He added: “Channel Five has proved itself to be a credible and competitive British broadcaster with some of the most sought-after programmes from home and overseas.

“I’m delighted to have taken ownership of the network and I know that, with the right investment, drive and leadership, it can go from strength to strength as a competitive broadcaster and a modern player for the digital consumer.”

Richard Desmond owns both the Daily and Sunday Express’s national newspapers and also owns the Daily Star and its Sunday counterpart, he also owns the celebrity lifestyle magazine OK!. Northern & Shell also owns a series of adult television channels. European legislation means Richard Desmond will not be able to advertise his print titles on Channel Five. He will, however, be able to advertise Channel Five in his publications.

Gerhard Zeiler, the RTL chief executive said: “With a significant recovery of the UK TV advertising market and Five performing well in the first half of 2010, we saw a window of opportunity to realise a transaction based on a fair evaluation of Five.”

Claire Enders, founder of Enders Analysis, said: “Desmond is someone who has a real interest in the media. He is an innovative entrepreneur. The edge he has is the free publicity in the Star, OK! and the Express. He will build the buzz and the glamour in the publications, which is something the channel has been sorely lacking.”

Richard Desmond says he will keep Channel Five as a public service channel. This means a prime slot on the electronic programme guide, but the broadcaster must pledge to screen a certain amount of news and current affairs programming.

He also revealed he will pay the £20m to allow Channel Five back in the Project Canvas, the joint venture with other partners that includ the BBC, Channel 4 and BT, to bring an online catchup TV service to the living room set. Channel Five had walked away from the venture earlier this year.

Richard Desmond cleared the takeover with the media watchdog Ofcom earlier this week, and is expected to be called in front of the House of Commons culture committee, who will quiz him on his plans for the channel.

Channel Five launched to great fanfare in 1997, backed by Pearson Television, United Business Media, Warburg Pincus and CLT-Ufa. CLT and Pearson later merged to form RTL, which subsequently took 100 per cent ownership. The group initially made its name in soft porn movies, football and action films, an image that the current chairman and chief executive Dawn Airey has worked hard to shed.

Recently the channel has struggled and in the last financial year, RTL was forced to write off more than half of the value of its UK operations. Channel Five’s earnings had also fallen 30 per cent to £250m and the management was forced into a harsh cost-cutting programme, stripping 87 jobs from 354 staff, also cutting £65m in costs. It had been hit very hard by the downturn which saw advertising plunge 12.5 per cent in 2009.

Ms Enders concluded: “Mr Desmond will be able to build market share at the channel through investment and cross-promotion, but will Five ever be a competitor to ITV? Hell no.”

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