Channel 4 chairman rejects ITV/Five merger

Luke Johnson, chairman of Channel 4, would rather see the broadcaster privatised than have it merge with ITV or Five.

Although Johnson remains opposed to privatisation, he would prefer it to merging with ITV, which he said would be an “enormous poisoned pill”, adding “on a personal basis, I don’t see a lot of value in equity in ITV”.

It was revealed yesterday that ITV has drawn up plans for a three-way merger with Channel 4 and Five to create one broadcasting giant that would rival the BBC (see ITV proposes merger with Channel 4 and Five).

Talking about a possible Five merger, he said that it would be difficult for Channel 4 to balance its public service obligations with being part of a commercial entity.

He added that there is “good will” to see talks with BBC Worldwide reach a worthwhile agreement with the timeframe laid out in Lord Carter’s Digital Britain report (see Broadband for all by 2012).

If a tie-up with the BBC’s commercial arm does not happen, Johnson said he would like an auction for the broadcaster to secure a decent price.

He said: “I happen to think, after extensive discussions with politicians on all sides, there is currently no appetite at Westminster to privatise Channel 4. But if our political masters decide to do that, don’t fudge it with a messy deal that neither secures PSB output nor the highest price for the taxpayer.”