The bid would be a coup for Rupert Murdoch, who has been trying to gain a foothold in the terrestrial TV market for some time with several failed bids to provide news to channels including Channel 5. Most recently, he unsuccessfully challenged ITN for the £40m-a-year ITV news contract.
BSkyB has teamed up with Princess Productions, set up by Big Breakfast launch editor Sebastian Scott, in an attempt to mount a challenge for the £12m-a-year early morning contract, believed to be the most lucrative at Channel 4.
The bid faces competition from incumbent Planet 24, which created the Big Breakfast. Planet 24, founded by Lord Waheed Alli and Charlie Parsons, has a complicated contract with Channel 4 which requires the channel to give it a year's notice.
Channel 4 is understood to have negotiated a deal with Planet 24 that ensures it a place on the shortlist in return for terminating the contract early.
The Sky/Princess deal, believed to be a frontrunner in the race, is understood to propose a mix of sports, showbusiness and news presented in a suitable format for a youth audience.
Other proposals include one from Monkey, the production company set up by Will MacDonald and David Granger, who both worked on TFI Friday. It has presented the most news-driven of the bids and has proposed Krishnan Guru Murthy as a favoured presenter.
RDF Media, the company behind Banzai, Scrapheap Challenge and Shipwrecked, is producing the most anarchic of the bids. It wants to combine the hectic pace of Banzai with topical issues.
TalkBack Productions, which produces Brass Eye and They Think It's All Over, could come up with the most entertainment-based of proposals. Its bid is expected to offer a traditional breakfast format with guests and a quiz.
TalkBack and Planet 24 are the only two bids with confirmed places on the shortlist.
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