Carter ultimately has no power to prevent Five, a private company, tabling or pursuing a formal takeover of Channel 4. But, as arguably the Government's chief minister for the broadcast sector, Carter has a major say on any mergers and acquisitions involving Channel 4, a publicly owned corporation.
Significant hurdles must be overcome for a Channel 4/BBC Worldwide joint venture to become a reality, and for this to be successful enough to plug Channel 4's claimed future funding gap of about £100m.
Sources say the venture plans ultimately to encompass full ownership of pay-TV broadcasters VMtv, operator to channels such as Living, and UKTV, owner of channels such as Dave. First, Channel 4 must buy VMtv by outbidding rivals thought to include BSkyB and Time Warner.
Secondly, BBC Worldwide, Channel 4 or both must buy Virgin Media's 50% stake in UKTV, which is valued by Virgin Media at £353.5m.
If a Channel 4/BBC Worldwide joint venture fails to materialise, Carter is expected to urge Channel 4 to consider partnerships with other commercial players - potentially leaving the door open to a Five/Channel 4 tie-up.
Sources claim Five would seek to strip significant costs from Channel 4 in the event of a merger. A spokesman for Channel 4 said: "Our record on efficiencies bears comparison with anyone in the industry. We have already cut 30% of our workforce. We reject the idea there is fat to be cut."
Five, BBC Worldwide and Lord Carter declined to comment.
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