The Channel 4 "Bidding Wars"

[JetixFann450]

https://variety.com/2022/tv/global/idris...235304200/

According to Variety, the main actor of "Luther", Idris Elba, is in talks with Miroma Group to buy Channel 4 for a £1 billion ($1.2 billion) bid. 

Out of all things, I wasn't expecting a British-born Hollywood actor to take up the opportunity of buying a public service broadcaster, it isn't something you usually see every day.
But it raises more questions about who would actually win the bid to buy Channel 4. It's still in the cards with other potential candidates, mainly Warner Bros. Discovery and Sky just to name a few.

[Brekkie]

Maybe that's why he's seemingly willing to advertise anything nowadays - building up a war chest. 

Perhaps not Idris Elba but a talent led bid to try and protect it's PSB value (if that's his interest) doesn't surprise me.  The trouble is if they're backed up by an investment firm there is always the fear of how much profit they'll strip out of it and how successful it can be in the long term, which is exactly the reason it shouldn't be privatised.

[KrazyKei]

Having a done a bit of research, the Miroma Group had just brought in Michael Grade as an adviser to the company. Read into that what you will. I looked up Celebrity Net Worth and it stated that Idris Elba's net worth is around $40m. He'd be lucky if he bought between 1%-2.5% at the very most.

Then again, what's stopping Idris Elba from bringing in his celebrity friends in acquiring Channel 4? Considering Ryan Reynolds part-owns Wrexham FC, nothing would surprise me anymore.

[Brekkie]

He's probably able to borrow far more than his network though, but then you have a company which has long been in the black funded on debt. We sadly see it happen far too often where stable companies are bought by those financed by debt, who then shift that debt onto the company who ultimately can't pay it back and fold.

[XIII]

If Richard Desmond could buy Channel 5 then Idris Elba buying Channel 4 isn't that crazy.

I still think it's more likely to be Warner Bros. Discovery who would want Channel 4 and could afford to pay for it.

[Brekkie]

I think given the direction WB Discovery have gone since the merger I don't think a linear PSB channel would be in their business model.

[JetixFann450]

I think given the direction WB Discovery have gone since the merger I don't think a linear PSB channel would be in their business model.

I think in reality, Channel 4 would somewhat be stripped down. Film4 Productions may end up merged into Warner Bros, certain channels and services may get sold off akin to the TF1-M6 merger in France and a lot of competition concerns would be somewhat questioned. If there is one company who'd probably benefit more from a purchase of Channel 4 is likely a pay-TV operator like Sky who otherwise don't have much of a decent FTA presence, unless you count Sky Arts and Sky News obviously.

[Inspector Sands]

Having a done a bit of research, the Miroma Group had just brought in Michael Grade as an adviser to the company. 

It does mention that in the article 

Read into that what you will. I looked up Celebrity Net Worth and it stated that Idris Elba's net worth is around $40m. He'd be lucky if he bought between 1%-2.5% at the very most.

Then again, what's stopping Idris Elba from bringing in his celebrity friends in acquiring Channel 4? Considering Ryan Reynolds part-owns Wrexham FC, nothing would surprise me anymore.

Yes of course, it won't be a case of Idris Elba buying the company outright, or even owning a massive stake. That's not how it works. It'll be him leading a consortium to purchase it, possibly a combination of actors and production companies, although that sort of money takes major venture capital. 

Stars owning production companies or broadcasters is nothing new of course - United Artists, MTM, TVam etc

[Ericak]

Elba would unlikely be spending any of his own money.

It is likely he would be getting a small % of the channel in return for being the public face of the bid. Having Britain's  most famous Black actor involved helps the bid stand out in a crowded field.

[Inspector Sands]

https://www.theguardian.com/media/2022/j...ation-plan

[Aplus1]

Channel 4 is obliged to provide a news service and if its current agreement with ITN is soon to expire (as it almost certainly is), they are obliged to enter into discussions to recontract with them - or another suitable provider - to ensure that the required service continues without disruption. As such, any negotiations of that nature are strictly business as usual, it can't stop just because the Government is trying to make a political issue of the channel's funding and ownership.

[RR]

Channel 4 is obliged to provide a news service and if its current agreement with ITN is soon to expire (as it almost certainly is), they are obliged to enter into discussions to recontract with them - or another suitable provider - to ensure that the required service continues without disruption. As such, any negotiations of that nature are strictly business as usual, it can't stop just because the Government is trying to make a political issue of the channel's funding and ownership.

Exactly right. The chances of any of the main five channels being allowed to remove their news coverage is nil - it is just The Guardian misleading.

[nwtv2003]

Channel 4 is obliged to provide a news service and if its current agreement with ITN is soon to expire (as it almost certainly is), they are obliged to enter into discussions to recontract with them - or another suitable provider - to ensure that the required service continues without disruption. As such, any negotiations of that nature are strictly business as usual, it can't stop just because the Government is trying to make a political issue of the channel's funding and ownership.

Exactly right. The chances of any of the main five channels being allowed to remove their news coverage is nil - it is just The Guardian misleading.

I disagree, we all know the terrestrial channels are not going to remove News requirements anytime soon. I think the point of the article is that Channel 4 want ITN to continue with News provision for as long as possible and to get a contract set in stone which is ensures and guarantees it’s future for the medium term at least. 

Any private owner may not want ITN to carry on with the News, getting ITN tied down for the medium term means that Channel 4 News will continue in its current capacity come privatisation.

[JAS84]

Yeah. If Comcast buy the channel, they'd probably want Sky News, which they own, to make Channel 4 News instead of ITN. It's in ITN's interests to get their deal renewed before Channel 4 is sold.

[Aplus1]

I disagree, we all know the terrestrial channels are not going to remove News requirements anytime soon. I think the point of the article is that Channel 4 want ITN to continue with News provision for as long as possible and to get a contract set in stone which is ensures and guarantees it’s future for the medium term at least. 

Any private owner may not want ITN to carry on with the News, getting ITN tied down for the medium term means that Channel 4 News will continue in its current capacity come privatisation.

Channel 4 have to maintain a news contract with someone. They can't take account of the future wishes of a maybe-new owner if they maybe-get sold. And if that new owner should ever come to pass and they don't want ITN to provide, they can put anyone else on the air, any time they want, while obviously honouring whatever obligations have been agreed to see out the contract. 

This is a complete non-story. It would be like someone complaining that you had hired a window cleaner, and were tying the hands of someone who might buy your home in future.

Besides, if the news contract doesn't go to ITN, the list of other companies who could do it is extremely short. And Sky News's experience is only of operating a short-term barebones service for TV-AM after their franchise loss was announced, or a few years with Channel 5, who terminated their agreement two years early. (https://variety.com/2010/tv/news/channel...118027975/)