Channel 4 To Push On With Possible Merger Plans
The recent departure of Channel 4 chief executive Mark Thompson has not deterred the broadcaster from considering a possible merger with Five, according to a major shareholder in the latter.
Lord Hollick, chief executive of United Business Media, is understood to have confirmed that discussions are still being held on a possible deal and that further progress is hoped to be made in the near future.
He told the Guardian: “That’s something we continue to pursue and, notwithstanding the recent changes at the top of Channel 4, I believe that Five’s enthusiasm is shared by the board and executives on Channel 4.”
Hollick added: “Channel 4 have made it clear and so have we that one of the most attractive strategic moves for both of us would be to create an alliance between the two. It could lead to a full combination of the two businesses, which would allow us to move forward effectively.”
News of a possible merger between Channel 4 and Five emerged earlier this year when Gerhard Zeiler, the chief executive of RTL, which holds the controlling stake in Five, confirmed that talks had been held with Channel 4 chief executive, Mark Thompson (see Channel 4 Confirms Merger Discussions With Five).
The board of directors at Channel 4 is understood to have been asked to appoint financial advisers to explore the logistics of a potential merger. However, it is unclear how far talks could go given that Channel 4 is a state-owned company with a public service charter.
Meanwhile, Five recently admitted that it needs to forge closer links with commercial rivals such as Channel 4 or BSkyB if it is to survive in the increasingly competitive multi-channel environment (see Five To Link With Rivals For Survival In Digital Age).
Channel 4: 020 7396 4444 www.channel4.co.uk
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