Two newspaper reports today suggest Channel 4's preferred options for securing funding have been closed off.
The Financial Times and The Times claim that the forthcoming draft report on the future of Digital Britain by communications minister Lord Carter will put forward the idea of bringing Channel 4 into a "wider entity".
A Channel 4/Five merger, rejected yesterday by Channel 4 chief executive Andy Duncan, but believed to be under consideration by Five owner RTL, could fit that description.
Both newspapers say that the Government is likely to reject extra public funding for Channel 4 and that BBC Worldwide's assets are unlikely to be handed to the struggling broadcaster.
Carter's report, due on January 26, is a major victory for the BBC, which will not have its licence fee top-sliced or lose control of the increasingly lucrative BBC Worldwide, claims the FT. The paper quotes a person familiar with the Government's thinking, who said: "Channel 4 completely overplayed its hand and the BBC is the clear winner."
The Times claims that talks between Channel 4 and the BBC about the possibility of the former merging with BBC Worldwide are "on the verge of collapse".
Advisers close to the BBC have described the mooted company as "Frankenstein M&A" and the corporation also fears any deal could break EU rules on state aid.
Another BBC objection is that its current first refusal agreement with Worldwide for commercial rights to programming such as 'Doctor Who' could not survive the transformation.
.jpg)
.jpeg)
