LONDON (Brand Republic) 鈥 Channel 4 is to spin off its commercial ventures arm in a move which could lead to a partial sell-off of the business.
The division, to be called 4 Ventures, will take control of the company鈥檚 multichannel offerings -- entertainment channel E4 and movie channel FilmFour - as well as other joint ventures. It will have its own managing director and accounts, and be kept separate from State-owned network Channel 4.
The restructuring will take place later this year. Chief executive Michael Jackson said he has no plans to float 4 Ventures but added, 鈥 I do not rule out offering shares in the joint ventures and possibly in the whole.鈥
The move by the broadcaster answers critics who are unimpressed by the broadcaster鈥檚 latest cable and satellite offering E4, which is not believed to have a clear public service remit. FilmFour, although running at a loss, is seen as serving as a platform for showcasing UK films.
E4 is also set to make substantial losses in the short term. This money is regarded by critics as money which should be used on Channel 4鈥檚 main programming budget. Both channels, however, are expected to become self-sustaining in the long term.