The Government wants to raise at least £1 billion from the sale of the broadcaster, despite strong opposition to the scheme.
As a result, Channel 4 could become the second UK public broadcaster to be sold to a foreign company. Channel 5 was the first, now owned by Paramount. Major streaming giants including Netflix and Warner Bros Discovery have been linked to the sale. It’s however also understood that ITV has been exploring its options.
The sale of Channel 4 is understood to be included in next month’s Queen’s Speech when the Government will lay out its legislative plans for the year ahead.
In an internal email issued to Channel 4 staff this evening, Chief Executive Alex Mahon warned the legislative process could take up to 18 months to clear the House of Commons and Lords.
Channel 4 was set up 40 years ago by the Government as a home for special-interest content and programmes for minorities, not represented by the other channels of the day.
During the first ten years, Channel 4 was closely linked to ITV’s regional broadcasters. At the time, ITV offloaded horse racing and schools programmes to the channel. Regional companies were responsible to managing ad sales.
From 1st January 1993, Channel 4 has been run by a corporation. This is in turn owned by what’s now known as the Department for Digital, Culture, Media and Sport.
Despite being under public ownership, Channel 4 has not had to rely on taxpayer’s money. Revenue raised from advertising and commercial partnership, plus extra income created by its digital offshoot channels and streaming service means the channel has remained profitable. This is contrary to what some Government ministers were briefing ahead of the sale announcement.