Government Could Back Merger Of Commercial Channels

United Business Media chief executive, Lord Hollick, has hinted that the Government and media super-regulator Ofcom could be willing to consider a possible merger between Channel Five and publicly owned broadcaster Channel 4.

The two channels have made no secret of their desire to forge closer links and have held tentative discussions about the logistics of a merger. However, they would need the all-clear from both the Government and Ofcom if any deal were to be done.

Hollick, who owns a minority stake in Five, suggested yesterday that there might be support for further negotiations. He said: “To date, the stakeholders have expressed views which range from open-minded to enthusiastic.”

He added: “What we are looking for is the integration of the two television stations, however one defines it. The benefits would be great. We believe that you could create structures that would bring together the two whilst retaining Channel 4’s status.”

Five and Channel 4 are keen to combine their operations to strengthen their position in the increasingly competitive multi-channel landscape. However, any deal would be highly complicated given that Channel 4 is a state-owned company with a public service charter and Five is a more populist venture 65% owned by RTL, a European broadcasting giant and division on Bertelsmann.

Last month it was reported that the Government is preparing a valuation of Channel 4 as the Treasury gives further consideration to a sell-off of the state-owned broadcaster. Government officials are understood to have consulted several city banks over the valuation process, giving a clear indication that privatisation for Channel 4 and a merger with Five is a possibility (see Channel 4 Set For Valuation Ahead Of Possible Sell-Off).

Channel Four: 020 7396 4444 www.channel4.co.uk Five: 020 7550 5555 www.five.tv

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