Taliesin News, led by GMTV chairman and former ITV news boss Clive Jones, comprises ITN, Northcliffe Media, Newsquest Media Group, Tindle Welsh production company Boomerang and Cardiff University.
The consortium includes more than 25 newspaper titles spanning Wales, such as the South Wales Evening Post and South Wales Argus, plus numerous websites.
The bid is supported by Phil Henfrey, head of news and programming at ITV Wales.
Taliesin News said it plans to offer a "ground-breaking news service for Wales".
Jones said: "Taliesin News brings together an unrivalled team of partners to create a local news powerhouse for the nation.
"By harnessing this news gathering and production network, we will ensure Wales has a news service that rivals the best of what is available around the world today."
With ITV exiting regional TV news provision and the local newspaper sector devastated by the recession, the Government wants to launch so-called independently financed news consortia to help plug the gap.
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