The Financial Times reports that the company is considering the move instead of going through with a plan to raise £100m for expansion beyond London.
Analysts have estimated the company's value at between £150m and £200m and it is believed to have attracted interest in the past from BSkyB, BT and ISPs such as Cable & Wireless.
The majority owner of the company is Chris Larson, one of the founders of Microsoft, but it is not known whether he supports a sale.
The company has grown to 35,000 subscribers, of which 55% are "triple-play" users, after a campaign last year created by ad agency Mother. It is also attractive for its ability to unbundle 137 local telephone exchanges, thus taking ownership of BT's lines into households.
Easynet, which has unbundled 232 exchanges, was last year bought by BSkyB for £211m.
Video Networks generated turnover of £1.9m in 2004 with an operating loss of £46.3m.
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