He already owns the Express newspaper and OK magazine giving opportunities for cross-promotion. The purchase was made by Desmond’s holding company Northern & Shell.

Channel Five was launched in 1997 and achieve a valuation of £1 billion in 2000. RTL bought out other shareholders and have now sold to Desmond which has left them with a loss of £1.1 billion.

He has already cuts have been announced as the staff numbers are to be cut by 27% losing 80 jobs our of 300. This follows a cut made by the previous owners of 25% in 2009.

Dawn Airey has said that she is leaving the channel along with six of the nine-strong executive board. She has said: “This is something we’re being asked to implement by our new owner in order to get to grips with a business that has struggled to make sustainable profits over its 14-year history.”

An analyst has suggested that Five will become a “celebrity factory” to drive sales to the newspapers and magazines.

Mr Desmond is in discussion with Endemol to bring the show to his channel and co-operate on other reality show projects.

Programmes that the channel already has including Home and Away and CSI will remain, and news/current affairs coverage will be increased significantly.

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