[michael21]

Richard Desmond, the billionaire owner of Channel 5, is reportedly considering the sale of his celebrity magazine empire, including OK!, Star and New.

A report published yesterday in Media Week indicated that Desmond's media firm Northern & Shell has appointed Barclays Capital to broker the sale.

According to official figures, OK! sells six million copies a week around the world and made £20 million last year in the UK. Desmond has helped the magazine to outsell key rival Hello! via a series of major exclusives, including deals with David Beckham and Katie Price.

Sources indicate that there isn't currently a "live brief" out for the sale, while Desmond is thought to be keen to leverage cross-promotion opportunities between his celebrity publications and Channel 5, the broadcaster he acquired for £103.5m last summer.

Last month, Channel 5 launched OK! TV, a new celebrity entertainment news programme presented by Matt Johnson and Kate Walsh. A Northern & Shell spokesman also dismissed the sale reports as "pure speculation".

However, an industry insider suggested that Desmond has grown privately worried about the dwindling selling power of celebrity news.

The development also comes at a time of major consolidation in the print industry, as companies brace themselves for a wave of merger and takeover activity.

French publisher Hachette Filipacchi recently sold more than 100 magazines, including Elle and Red, while BBC Magazines is believed to be close to a deal to sell off its magazines division, publisher of Radio Times and Top Gear.

Discussing the possible sale of Desmond's celebrity magazines, Alex de Groote, analyst at brokers Panmure Gordon, told the Evening Standard: "If the print assets are up for sale, what valuation will they get? Will they go as a trophy asset? It's a defining point for UK media.

"If Desmond is saying, 'I'm giving up interest', does that mean these businesses have reached a tipping-point?"