Channel 4 to take over Five

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In todays Guardian....

Channel 4 in talks with Five over merger

Directors asked to appoint advisers to pursue plan

Janine Gibson
Friday February 27, 2004
The Guardian

Channel 4 and Channel Five are in talks about merging, a move that would dramatically change the UK television landscape.

The chief executive of Channel 4, Mark Thompson, confirmed yesterday that discussions had begun.

He is understood to have met United Business Media and RTL, the joint owners of Five, to discuss combining sales operations. But the talks have widened and a full merger has been on the agenda.

At a meeting of the Channel 4 board last week, directors were asked to appoint financial advisers to pursue the plan. However some board members are understood to have urged caution and a firm has not yet been appointed.

The government would need to sanction a merger involving the publicly-owned Channel 4, and an act of parliament would be required to change its ownership.

One option being discussed is running the two businesses together, but with separate television schedules, along the lines of BBC1 and BBC2.

Although the talks predate the appointment of Luke Johnson as chairman of Channel 4, observers have pointed to his commercial background as a signal that the media regulator, Ofcom, feels a change in the channel's ownership is likely and desirable, and appointed a chairman who would be able to push it through.

Senior executives at the channel favour the idea of creating a trust to own the channel, similar to the Scott Trust, which owns the Guardian.

The ability to combine public purpose with commercial strength is thought to appeal to executives who believe they can merge the two channels under the umbrella of a trust, with a subsidiary commercial company through which private money could be invested.

Executives at Channel 4 are known to be concerned about its survival over the next 10 years as a minority standalone channel competing against a merged ITV.

Mr Thompson is understood to believe that the channels would optimise their strength in the marketplace by cooperating rather than competing.

The idea is believed to have originated with Lord Hollick, the minority shareholder in Five and the chairman of United Business Media, although Mr Thompson is understood to have met representatives of the German majority shareholder, RTL.

He has presented the Channel 4 board with a number of options, ranging from asking for a share of the licence fee to privatisation.

Sources close to the board say, however, that the favoured option is a "horizontal" merger with Five.

A senior Channel 4 source said: "We would have to convince the government to give up an asset which Gordon Brown thinks is worth £2bn, and that isn't straightforward."

I think it would be a good idea, and solidify Channel 4. Like Five is pretty Cheesy.



John

flogen

yeah heard about this... what would it be called? channel 4/5??

Could be interesting..... basically C4 could pick up anything decent 5 has, drop the rest, and make better competition for ITV. 5 bosses would be abit more stable too if they joined up.... I wonder if that means that we'll get to see the soft-core porn 5 prided itself on when it started up

Flogen

Cork

Well - consolidation is the name of the game.

RTE really needs a partner. Maybe Channel 4 show look over towards Mountrose.

Guy:Incognito

It'll be good if they keep showing the uefa cup. Us liverpool fans need to see some european football over the next couple of years

Caesar_Bojangle

Originally posted by Stekelly
It'll be good if they keep showing the uefa cup. Us liverpool fans need to see some european football over the next couple of years

Don't worry, we'll be in the champions league next season

donhughberto

Liverpool are lucky to get into europe next season let along CL lol, I would love to see five, have never seen one programme on it!

byte

Originally posted by Stekelly
It'll be good if they keep showing the uefa cup. Us liverpool fans need to see some european football over the next couple of years

Yeah, I watched the UEFA Cup game last Thursday. five is handy for something. Although I have it, I seldom watch it, with the exception of the odd footie game. And Fifth Gear whenever it is on (reruns on Discovery H&L). They show a fair bit of US sports over the nights.

Elmo

RTE really needs a partner. Maybe Channel 4 show look over towards Mountrose

Great Idea then we can have Channel 4 Eire. Lets just and TG4 over to the Beeb.


But as that got of the point.

Yes It sound like a good idea, I think the BBC need a proper oginal producer to compete with them unlike ITV who's last good idea was WWTBAM? well i suppose that it works out well for Chris Tarant who has a Job for life.

Coronation Street 40 years
Emmerdale 30 years
Stars In there Eyes 20years
Blind date ran for 20 years just to be replaced by blind date on a saturday night.

Are we not tried of this drivel???????

Mossy Monk

Originally posted by donhughberto
I would love to see five, have never seen one programme on it!

if you like US sports you are missing out

donhughberto

Originally posted by Mossy Monk
if you like US sports you are missing out

Indeed i love the baseball!