BBC and Channel 4 discuss merging ad sales, E4 and streaming into one venture

The BBC and Channel 4 have held early talks with the UK government about putting parts of their businesses into one company, Reuters reported on 7 October, citing two people with direct knowledge. One option would combine Channel 4’s advertising sales, its E4 and Film4 channels and its streaming service with UKTV, the BBC’s commercial arm. The two broadcasters could own the new company in equal shares.

Channel 4’s main channel would stay outside the venture, although it could earn fees from it. UK Government Investments, which manages state-owned assets such as Channel 4, is involved in the talks. It declined to comment.

Channel 4 already sells UKTV’s advertising

The plan goes further than the deal BBC Director General Matt Brittin had hinted at, which would have put Channel 4 shows on BBC iPlayer. The two companies already work together. Channel 4 sells ads for UKTV under a long-running agreement and streams UKTV shows such as “The Office” and “Red Dwarf”. It has also agreed to merge its ad sales with Channel 5, which is owned by Paramount Skydance.

A BBC spokesperson would not discuss the talks but called closer work between public service broadcasters “vital”. Channel 4 said it does not comment on speculation and supports more collaboration. Last month its chief executive, Priya Dogra, ruled out a merger with the BBC but said she was open to sharing content on iPlayer.

BBC and Channel 4 are both cutting hundreds of jobs

Both broadcasters face shrinking live TV audiences, as most UK TV owners now stream on the set. Global streaming companies also take a growing share of ad money. In June the BBC said it would cut 550 jobs to save £500 million over three years. Channel 4 announced in September that it will cut about 340 jobs, more than a quarter of its staff. It reduced its pre-tax deficit to £10 million in 2025.

The government dropped plans to sell Channel 4 in 2023, a year after Boris Johnson’s government announced the sale. According to Reuters, the new talks could pick up next year, depending on progress in the BBC’s funding negotiations with the government.

UKTV, E4 and Film4 airtime could sit in one company in 2027

The open question is whether the talks restart once the BBC agrees its new funding deal. If they do, UK media plans for 2027 could treat UKTV, E4, Film4 and Channel 4’s streaming inventory as one seller, owned half by the BBC.