Business

Current TV has low-watt appeal

Current TV’s small numbers will make it tough to attract big bids.

The cable network, which recently put itself up for sale, is hoping to lure buyers even as it struggles with low ratings and questions about its cable distribution.

The network, started in 2005 by former Vice President Al Gore, averaged only around 35,000 viewers in the first two weeks of October, according to Nielsen figures.

Still, the channel gets about 12 cents a month per subscriber from cable operators and is carried in 60 million US homes, according to estimates by SNL Kagan.

The low ratings but relatively high subscriber fees spell trouble for the network.

In general, cable and satellite-TV providers are looking to cut payments to smaller channels that aren’t particular popular to help pay for higher sports and other programming costs.

One media banker said Current TV may fetch between $200 million and $300 million — about half the amount that TV Guide channel was looking for in an auction earlier this year. Owners Lionsgate and JPMorgan’s private-equity arm, One Equity Partners, ended the TV Guide auction because of a dearth of buyers.

Current TV has hired JPMorgan and boutique bank The Raine Group to explore options, which include an outright sale, a combination with a bigger entity or new venture capital funding. The network declined to comment.

Comcast and satellite operator DirecTV are shareholders in Current TV and would benefit from a potential sale. Ron Burkle’s Yucaipa Cos. also has a stake in Current TV.

Once source said Burkle, who has been increasing his media holdings, may be interested taking over the channel. Yucaipa declined comment.