The government is looking for expressions of interest in running the Villa Marina and Gaiety Theatre complex.
Both venues would remain in government ownership but the operation outsourced.
Staff were informed of the development this morning.
Economic Development Minister Laurence Skelly said: 'At this stage we are testing the market to establish what interest there is in running both venues. This process follows the recommendation published in the ‘Review of the Scope of Government in the Isle of Man’ in March 2012 that the Villa Marina and the Gaiety Theatre could be operated more effectively by contracting them out.'
He said it would save tax payers' money as the financial contribution made through the budget allocated to operate the venues would be greatly reduced.
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