BT in merger talks with Channel 4

BT is in talks with Channel 4 over a possible merger of its television subsidiary BT Vision with the broadcaster.

Luke Johnson, chairman of Channel 4, said he would fully support a merger between Channel 4 and BT Vision, according to a report in the Sunday Telegraph.

Johnson said that a merger offered a “certain logic”. “A combination of Channel 4 and BT Vision is worth exploring,” he added.

Channel 4 and BT reportedly discussed a tie-up last year, but the idea was shelved because Channel 4 preferred a merger with the BBC’s commercial arm BBC Worldwide.

Last week, Johnson revealed that he does not want Channel 4 to merge with Five or ITV, saying that he would rather the broadcaster was privatised (see Channel 4 chairman rejects ITV/Five merger).

This followed the revelation earlier in the week that ITV had drawn up a plan for a three-way merger with Channel 4 and Five to create a broadcasting giant to rival the BBC (see ITV proposes merger with Channel 4 and Five).

Channel 4 expects to have a funding shortfall of £150 million a year from 2012.