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C4/BBC Worldwide
A full merger between the two entities looks unlikely - joint ventures across complementary parts of the business are more likely.

Channel 4 could be given some of the £130m-a-year BBC licence fee digital switchover surplus to allow it to join forces with BBC Worldwide to buy Virgin Media's 50% stake in UKTV. Worldwide already owns the other 50%.

A tie-up between Channel 4 and Worldwide's magazine business is on the cards. A number of C4's programme brands could have magazine extensions like those of Worldwide's BBC Good Food and Radio Times.

Ad sales synergies have also been mooted. Andy Duncan, C4's chief executive, said: "We have excellent ad sales capability as well as a strong brand and channels - this could be fused with BBC Worldwide's DVD business, channels and consumer products. There is lots of overlap. We are also talking to them about potential online tie-ups, but it's all conceptual at the moment."

David Moody, director of strategy and managing director of digital media, BBC Worldwide, added: "We are having constructive discussions with C4 about synergies in our UK businesses, exploring ideas that offer new revenue streams and create value that will benefit C4 and licence fee payers. We are not looking at any form of tie-up that would take value due to the licence fee payer and give it to C4."

C4/Five
This option was not emphasised by media minister Andy Burnham at the Oxford Media Convention last week, nor is it favoured by Channel 4's Duncan, who has described it as "mixing oil and water" - with C4 being non-profit and Five profit-only.

However, Gerhard Zeiler, chief executive of Five parent firm RTL, believes it would deliver benefits to viewers, allow both players to retain their identities and make sense in the economic downturn. Both broadcasters are funded by ads, commission programmes from outside producers and rely on home-grown and acquired programming.