Channel 4 is contemplating its acquisition by a non-profit trust rather than undergoing a commercial privatisation as the Tories’ policy programme crumbles.
The broadcaster is considering whether it could raise money from charities and foundations so that it is no longer state-owned and on the government’s books. Talks are at an early stage, with potential backers not yet involved, according to a report in The Telegraph.
Such a deal would likely require hundreds of millions of pounds but reports expect Channel 4’s social purpose to potentially be very attractive to wealthy benefactors, The Telegraph noted.
The culture secretary appointed by Liz Truss, Michelle Donelan, has been reconsidering the business case for its privatisation.
Channel 4 is entirely self-funded from advertising and a big advertising recession is expected, which would significantly lower the price for a potential commercial buyer.
Under Boris Johnson, it was advised that Channel 4 would need a commercial owner to survive the shift to streaming.
Acquisition by a trust would be expected to remove any uncertainty surrounding whether public finances are needed to help run Channel 4 in the event that advertising sales plummet, while still serving minority interests and audiences.
Non-profit rust ownership has been previously suggested but the idea regained momentum as the threat of privatisation waned.