ITV have reportedly been plotting to launch a takeover bid for Channel 4 in order to create a "super channel".
ITV to launch takeover bid for Channel 4
The British broadcaster told ministers it showed interest and wanted to make an offer, after the Government confirmed on Wednesday (05.04.22) that it would be privatising Channel 4 by 2024 with an estimated price of £1 billion.
ITV have taken advice from bankers including Credit Suisse and Robey Warshaw.
They will not be alone in wanting to buy the channel as bids are expected to come on from Sky, Discovery as well as Paramount.
A merger of the two would create a powerhouse as it would combine all the primetime shows and documentaries together into one hub such as ‘Love Island’, ‘Gogglebox’, ‘Dispatches’ and ‘Friday Night Dinner’.
One industry source said: “The best bet for the UK is that ITV and Channel 4 combine so the nation has one strong commercial public service broadcaster.
“It would ensure there is another large party other than the BBC that would continue to make British programming' and would also be 'a proper contender to the Americans.”
The source added: “A merger of ITV and Channel 4's streaming services would create a much more substantial player in the digital space.
“It would double in size and be classed as a proper contender to the Americans.”
Channel 4, which is currently owned by the Government, had an annual programming budget of £660million before the pandemic.
More than 90% of its £1 billion annual revenues come from advertising. It has 28% of the UK TV advertising market whereas its rival ITV has 45%. The merge would have over 70% of the market to one company.
ITV, which is worth £3.3 billion, have not made a final decision, but they could still back out.