There are widespread reports in the British press that the UK government is looking to somehow privatise Channel 4, which is currently publicly owned.
The reports of a privatisation are not themselves new, but the current gossip is that government might raise up to £500m ($750m) – or more – from a sale. RTL is just one of the names in the frame.
Channel 4 doesn’t get a penny from either the government or licence fee payers. It depends almost entirely on advertising for its income, and the past weeks have seen assorted suggestions made by regulators and other interested parties on how Channel 4’s funding gap might be managed.
We have already reported that Ofcom is keen on hiving off some of the BBC’s licence fee income to support Channel 4’s public broadcasting obligations. Another proposal last week saw a suggestion that Channel 4 merge with BBC Worldwide, and thus guarantee C4 an income stream over and above its advertising revenues.
The latest suggestion has reports of RTL Group, Europe’s biggest commercial broadcaster, and the owner of 43 commercial TV channels and networks in 10 European countries, somehow involved. RTL already owns the UK’s Channel 5. According to reports RTL has instructed bankers JP Morgan to investigate a bid.
Source:RapidTVNews | 
16-12-2008
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