The BBC has revealed that its commercial arm, BBC Worldwide, may be put up for sale and admitted talks with major media companies and banks over the future of the business.

The state broadcaster, under pressure from its new director general, Mark Thompson, to cut costs, said that was exploring "every option" for the unit "from status quo to complete sale and everything in between".

The value of BBC Worldwide, which made an operating profit of £37 million last year on sales up 3 per cent to £657 million, has been put at £2 billion.

Talks had been held with media giants including Time Warner, Bertelsmann and Walt Disney and with investment banks Rothschild, Deutsche Bank and Morgan Stanley.

However, the corporation said that the negotiations had been designed to progress a strategic review, set to report by the end of the year, rather than attract bids.

"We're consulting - that's not offering a business for sale," the BBC said.

The comments came as Bertelsmann, the world's fourth-largest media company, said that it was eyeing takeovers as it announced a tripling in half year profits.

Gunter Thielen, the Bertelsmann chief executive, said: "Bertelsmann is steadily increasing its scope for investments to strengthen our core businesses and expand in new growth markets.

"We will pursue appropriate opportunities when they become available."

The unlisted company, which boasts a €2 billion war chest, achieved operating earnings of &euro596 million for the first half of 2004 compared with €186 million for the same period last year. Sales hit €8.1 billion, helped by sales of Bill Clinton's autobiography My Life.

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