Sky's Love Productions rejects BBC to sell 'Bake Off' to Channel 4

Love Productions, a television producer 70%-owned by Sky, has secured a much improved rights deal for its hugely successful The Great British Bake Off programme with Channel 4 after negotiations broke down with the BBC.

Love Productions is understood to have agreed a three-year deal for the Bake Off rights to Channel 4 for £75m, and was reported to have turned down much bigger offers in order to keep the programme on free-to-air television.

The BBC reportedly offered about £15m to keep the rights, around double its previous terms, but negotiations broke down on Monday when Love demanded an estimated £25m a year, the Guardian and Mirror reported.

Love, which also makes the Great British Sewing Bee and Benefits Street, confirmed that they were "unable to reach agreement on terms to renew the commission of The Great British Bake Off".

However, the new deal has apparently been made before Love signed up the show's popular presenters Mel Giedroyc and Sue Perkins and judges Mary Berry and Paul Hollywood, with former BBC1 controller Lorraine Heggessey telling the Newsnight programme she understood the GBBO stars had not yet signed up to moving to Channel 4.

Despite the prospect of having paid for a show without its star attractions, Jay Hunt, Channel 4’s chief creative officer, said: “I’m delighted we have been able to partner with the hugely talented team at Love Productions to keep this much-loved show on free-to-air television.”

The first Bake Off programme set to be broadcast on Channel 4 will be a celebrity version of the show in 2017, in aid of Stand Up To Cancer.

Sky acquired its 70% stake in 2014 as part of a strategy to broaden its content business.

Creative director Richard McKerrow said: "We believe we've found the perfect new home for Bake Off. It's a public service, free-to-air broadcaster for whom Love Productions have produced high quality and highly successful programmes for more than a decade.

"It's tremendously exciting to have found a broadcaster who we know will protect and nurture The Great British Bake Off for many years to come."

Michael Grade, former chairman of the BBC and Channel 4 CEO, said the commercial broadcaster has "shot itself very seriously in the foot" by outbidding the BBC as this undermined its argument against being privatised.