E4 Equity Partner Discussions With BSkyB Flounder

Channel 4 is reported to have abandoned discussions with BSkyB about the satellite broadcaster becoming an equity partner in C4’s new pay-TV entertainment channel, E4. Channel 4 said that it has always been looking for possible equity partners, but that it could not discuss individual companies, or confirm that the negotiations reported in the national newspaper had been taking place.

The report claimed that had the deal with Sky gone ahead, it may have included a clause which would prevent E4, thought to be a potential rival for Sky One (see E4 Forces Broadcasters To Consider Digital Entertainment Offerings) from being carried on rival digital platforms for an agreed period. Channel 4 said today that it was important for the channel to be carried on all digital platforms following its January launch, and that discussions with the various operators were ongoing.

E4 was one of two new channels proposed when Channel 4 presented its annual report and financial statement earlier in the year (see Channel 4 Doesn’t Rule Out Subsidiary Flotation). The other was a channel launched in partnership with NTL, which would feature interactive racing. The future of this venture seems uncertain at the moment, as Channel 4 pulled out of the bidding for broadcast rights for horse racing during the summer (see Channel 4 Withdraws Its Bid For Horse Racing Rights). Racecourse owners Arena Leisure are expected to put a bid in for the media rights today.

BSkyB: 020 7705 3000 Channel 4: 020 7396 4444