RTL Expresses Interest In Channel 4 And Five Merger

The rumours surrounding a merger between Channel Four and Five were given another boost when RTL boss and majority owner of Five said the group would be ‘prepared to go in to a minority position’ if the television broadcasters decided to team up.

RTL, which owns two-thirds of Five, and United Business Media, which owns the remaining third, have previously indicated they would be happy with a 40% share in a larger combined broadcaster.

Chief executive of RTL, Gerhard Zeiler told The Times: “We are prepared to go to a minority position in a combined company. The idea of 4 and Five was not that we would take over Channel 4. Both channels need to be bigger.”

This is the first time that Zeiler has expressed an interest in losing control of Five in a bid to expand RTL further in the UK. Last month he said RTL was in no rush to decide on future tie-ups and that the group was taking its time to decide how to develop its multi-channel strategy first before any discussions take place.

However, it is not clear whether the bosses of Channel 4 would be as willing to let Five take a 40% share in the newly formed broadcaster because of the siginificant turnover difference between the two companies. Last year, Channel 4’s turnover hit £770 million, compard to Five’s £270 million.

The reason behind the merger discussions is that many think that, individually, neither Channel 4 and Five are big enough to survive in the multi-channel world, as the number of digital stations continues to grow and further fragment the media.

Channel Four: 020 7396 4444 www.channel4.co.uk Five: 020 7550 5555 www.five.tv

Recent Television Stories from NewsLine Digital Television Round-Up – August 2004 Older Viewers Embrace Multi-Channel Television Sky On Track To Reach 8 Million Homes By 2005

Subscribers can access ten years of media news and analysis in the Archive