Thompson Rules Out Privatisation For Channel 4
Channel 4 chief executive, Mark Thompson, has ruled out the privatisation of the broadcaster just weeks after appointing financial advisers to explore the logistics of a potential merger with Five.
The debate surrounding Channel 4’s future came to the fore earlier this month following reports that Thompson and Lord Hollick, chairman of United Business Media, the minority shareholder in the Five network, had met to discuss the possibility of a merger (see Channel 4 Confirms Merger Discussions With Five).
Thompson’s dismissal of privatisation came in today’s Media Guardian as part of a column written by Thompson outlining the steps being taken to determine the broadcaster’s future.
The Channel 4 boss insisted that the broadcaster’s board of directors is as opposed to privatisation as all of its predecessors have been. However, he admitted that other routes were being considered for the channel and said that the creation of ‘trust status’ was currently the front runner.
Thompson said: “The channel’s public service remit would be set out in the trust deed in perpetuity. The trustees, who could perhaps be appointed by our regulator Ofcom, would be charged with ensuring that that remit was fully and effectively carried out.”
He added: “Because the channel would have passed out of Government ownership, privatisation or take-over by one of the media giants would no longer be a threat. Yet a trust could potentially enjoy greater commercial flexibility that Channel 4 does today as a statutory corporation.”
Five was originally mooted to become Channel 4’s bedfellow in a merger to rival that of ITV. However, the waters have become increasingly muddied with ITV’s chief executive, Charles Allen, demanding the right to bid for a privatised Channel 4 should the option arise (see ITV Could Bid For Channel 4 In Run Up To Merger With Five).
Government officials have also hinted that any private purchase of the channel could be derailed as the sale of the state-owned broadcaster would have to be in the form of an auction, with Channel 4’s fate being sold to the highest bidder (see Channel 4 Auction Could Scupper Five Merger).
Thompson has left himself room for manoeuvre stating that collaboration with Five is a possibility, but that the controllers of the channel do not want to sell out to anyone. He said: “We want to find the best way of maintaining independence forever.”
Channel Four: 020 7396 4444 www.channel4.com
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