German firm RTL, which owns Five, is considering a new take-over bid for fellow terrestrial broadcaster Channel Four.
According to reports RTL is considering a new take-over bid for Channel Four, the German firm currently owns Five. In 2004 a proposed merger between Channel Four and RTL owned Five fell apart but now the German firm is considering a new bid. The firm has apparently asked investment bank MorganChase to examine the prospect of the move, The Sunday Times reports. As well as the 2004 merger bid between Five and Channel Four, RTL has also previously made a take-over bid for ITV as it tries to expand its UK reach.
Channel Four is currently state-owned but is suffering from funding problems due to a fall in advertising revenues, made worse by the current economic climate. The broadcaster has warned it will run out of money by 2012 unless additionally funding is given to it. Media regulator Ofcom is considering a range of options to aid Channel Four with its funding shortfall, including sharing the licence fee with it.