ITV told ministers it would be interested in making an offer to its publicly owned rival, according to business reports yesterday
According to reports, ITV could make a bid to take over Channel 4.
The trade radio told ministers it would be interested in making an offer to its publicly owned rival, which, according to business reports yesterday, creates a British ‘super channel’.
Channel 4 will be privatized in 2024 with an estimated price of £1 billion.
ITV is understood to have taken advice from bankers including Credit Suisse. But you won’t be alone when you want to buy a channel.
Tenders are expected from both sides of the Atlantic, with speculation that Sky, Olympic broadcaster Discovery and Channel 5 owner Paramount may be involved.
The tie-up between Channel 4 and ITV will create a TV powerhouse that combines a list of past hits and documentaries like Gogglebox, Friday Night Dinner and Dispatches with ratings hits from the latter. This includes Love Island and Trigger Point.
Channel number 4)
It will also promote ITV’s own streaming plans, which announced a new streaming service ITVX last month.
According to reports yesterday, a merger would give the combined business an estimated 70% of the UK TV advertising market share and the resources to invest heavily in new programmes, to compete with Netflix and Disney+.
Channel 4, established in 1982 to provide programming for underage audiences, is now owned by the Government.
Its annual programming budget a year before the pandemic was around £660 million, funding films such as It’s A Sin and The Great British Bake Off.
Channel 4 derives more than 90% of its nearly £1billion annual revenue from advertising and accounts for around 28% of the UK’s total TV advertising market.
Channel number 4)
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Its rival ITV has 45%. Sky Media, which also sells Channel 5 ads, accounts for about 27%.
A Channel 4 spokesman said it was “disappointed” with the decision to privatize it.
It said it would continue to engage with the Government in this process to “ensure that Channel 4 continues to play its unique role in the UK’s national life and creative ecosystem”.
The channel says it has presented the Government with a financially viable alternative to the privatization process.
ITV declined to comment on any plans. A channel source said initial reports were “ahead of reality”.
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https://www.mirror.co.uk/tv/tv-news/itv-interested-making-offer-take-26652035 ITV interested in making offer to take over Channel 4 to create 'super channel'