Government planning to Sell Channel 4

[JK1985]

If ITV did buy Channel 4, that would be sweet, as it would mean they have come full circle, as Channel 4 was always considered a subsidiary of the ITV companies and the IBA since it launched in 1982.

[Alx321]

Channel 4 needs to privatised it will help it grow massively, if it doesn’t I don’t think it will be able to survive against the big streaming services of this world. As well in a couple of years you will get people complain that Channel 4 is failing, but the governments response will be that you didn’t want privatisation so this is what you get.

[Rdd]

Straying slightly off topic but looks like some WB content such as Dawson's Creek and Buffy/Angel has disappeared off All4 in the last few weeks. I'm assuming we're not yet in a position where such content might be swallowed up by Discovery+ as part of this deal.

Buffy & Angel are on Disney+ now (and Buffy’s on Prime Video too), having been 20th Century productions, while Dawson’s Creek is on Netflix (it’s done the rounds of a lot of streaming services lately). I wouldn’t see any of these series ending up on Discovery+ at any point, it’s not really it’s thing (factual/reality TV is) and Channel 4 don’t own any of these shows, just rights they picked up for a while.

But there is no deal yet. In fact there is no decision to sell off Channel 4 yet, never mind any sort of sale process having been commenced (formally, at least).

If ITV did buy Channel 4, that would be sweet, as it would mean they have come full circle, as Channel 4 was always considered a subsidiary of the ITV companies and the IBA since it launched in 1982.

No, it was never a subsidiary of the ITV companies, though they sold its airtime. It was a wholly owned subsidiary of the IBA up until the end of 1992 and an independent statutory corporation (ie it has no issued share capital and so has no shareholders, it has members appointed by Ofcom) since then. Indeed a necessary precursor to any trade sale will be legislation to convert it back into a company that can be sold.

[Brekkie]

Channel 4 needs to privatised it will help it grow massively, if it doesn’t I don’t think it will be able to survive against the big streaming services of this world. As well in a couple of years you will get people complain that Channel 4 is failing, but the governments response will be that you didn’t want privatisation so this is what you get.

C4 is profitable and it's streaming service is the biggest commercial free to air streaming service in the UK. It's doing absolutely fine (financially at least) without being sold off, and most of it's barriers to growth are regulatory which could be changed without a sale.

[what]

Seems C4 are breaking out the defensive ad campaign strategy.

[AlfieMulcahy]

Seems C4 are breaking out the defensive ad campaign strategy.

I caught these earlier, both extremely good promos IMO.

Here's the Paralympic one:
https://youtu.be/OjIP9EFbcWY


I can't seem to find a full version the 'Alltogether Different' promo although they have set up a website:https://www.channel4.com/collection/alto...y5zOSqF9Uw

[Meteor]

ITV would have to take on debt to make a leveraged bid for C4; I can't imagine it has billions in cash on hand (though others may know different?).

Is there anything stopping the government selling C4? I take it would deliver a cash windfall straight to the Treasury?

[HTV Best]

Interesting if Discovery want to make a bid for C4 why would they want to shut down all their linear channels by 2023?

https://mediaboyblog.blogspot.com/2021/0...d.html?m=1

[VMPhil]

Interesting if Discovery want to make a bid for C4 why would they want to shut down all their linear channels by 2023?

https://mediaboyblog.blogspot.com/2021/0...d.html?m=1

I'd take that article with a huge pinch of salt.

[JK1985]

ITV would have to take on debt to make a leveraged bid for C4; I can't imagine it has billions in cash on hand (though others may know different?).

Is there anything stopping the government selling C4? I take it would deliver a cash windfall straight to the Treasury?

The government can sell Channel 4, as it is technically a publicly owned company, even though Channel 4 receives not one penny of public money. I feel the government, even though Channel 4 costs them nothing, want to get rid of it as they feel the current ownership deal is outdated.

They will use the Viacom CBS ownership of Channel 5 as an example of a public service broadcaster being able to continue to provide basic PSB elements under new ownership.

Any deal done to sell Channel 4 would include a must-do element of PSB requirements by the new owner, and any new owner might not want to commit to these requirements, which means the list of likely buyers are limited.

[OldSkoollCITV]

ITV would have to take on debt to make a leveraged bid for C4; I can't imagine it has billions in cash on hand (though others may know different?).

Is there anything stopping the government selling C4? I take it would deliver a cash windfall straight to the Treasury?

The government can sell Channel 4, as it is technically a publicly owned company, even though Channel 4 receives not one penny of public money. I feel the government, even though Channel 4 costs them nothing, want to get rid of it as they feel the current ownership deal is outdated.

They will use the Viacom CBS ownership of Channel 5 as an example of a public service broadcaster being able to continue to provide basic PSB elements under new ownership.

Any deal done to sell Channel 4 would include a must-do element of PSB requirements by the new owner, and any new owner might not want to commit to these requirements, which means the list of likely buyers are limited.

The Not 4 Sale campaign on the Broadcast magazine is popular. They could be a Injunction against the government.

[MrBiggieSMLZ]

Interesting if Discovery want to make a bid for C4 why would they want to shut down all their linear channels by 2023?

https://mediaboyblog.blogspot.com/2021/0...d.html?m=1

I'd take that article with a huge pinch of salt.

Yeah, same here.

[Bluecortina]

I think ITV and C4 would be a good fit together and would also ensure C4 remains in general public ownership. By my last point I mean publicly listed on the LSE and therefore not completely owned by one single entity or shareholder. I feel C4 has a large 'footprint' on the UK PSB landscape unlike Channel Five, and a direct transfer to foreign ownership could be a political hot potato.

I do not think any reasonable purchase price would be an obstacle for ITV plc, or perhaps some other type of financial arrangement though what that could be I don't know.

On the other hand, C4 could just be listed on the LSE in its own right with the proceeds going to HM treasury - maybe a restriction on the maximum number of percentage shares held by any individual shareholder?

[Jexedback]

I appreciate the ££ would be an obstacle but could some of the independent production companies join forces and run it collaboratively?

[Sweetcorn]

Knowing it's going to be sold ...how long is left on channel 4 contracts for shows like bake off, Simpsons, Any sports rights it has ?
Would this mean renewal by channel 4 when rights come up again unlikely?
if sooner than a sale of the channel would go through would these kind of shows end up bid for by any other network could bbc actually get bake off back? Or itv get it ?