By Nathalie Porter
A merger between Channel 4 and rival terrestrial broadcaster Five could become a reality, following reports that the broadcasters have started discussing such a move, which would have a dramatic impact on the future of British television.
Mark Thompson, chief executive of Channel 4, is understood to have started talks with Five's parent companies United Business Media and RTL over a combination of their sales operations. However, it has been reported that a full merger has also been added to the agenda and that directors of both broadcasters were asked to appoint financial advisers to pursue the plan.
Such a move would have to be sanctioned by the Government and an act of Parliament would have to be passed to change ownership. Should the broadcasters push ahead with the plans, they are likely to run the two channels together with separate schedules along similar lines to how BBC1 and BBC2 operate.
A merger between Channel 4 and Five's sales houses was made possible by provisions within the Communications Act, which was implemented by the Government last year and allowed ITV broadcasters Carlton and Granada to integrate their operations.
Combining Channel 4 and Five's sales houses, or a possible merger between the sales operations of either broadcaster with BSkyB's advertising sales division, was viewed as an acceptable move to compete with the enlarged ITV group.
