Breaking news as the privatisation of Channel 4 is going ahead, according to a government source. In an email to Channel 4 staff this evening, Chief Executive Alex Mahon claimed that in the “last hour” she had been informed Nadine Dorries will be shortly announcing the decision to sell the broadcaster. Confirming the news, a government source says the sale will go ahead as part of a package of reforms to modernise and sustain the UK’s public service broadcasting sector. 

Although, in the words of the government, Channel 4 is currently performing well, they believe state ownership is holding it back in comparison to its privatised competition, such as Netflix. Privatisation will allow them to borrow money and raise private sector investment:

“C4 is a great business with a strong brand built around it being creative, innovative and distinctive but a change of ownership will remove its straightjacket, giving C4 the freedom to innovate and grow so it can flourish and thrive long into the future and support the whole of the UK creative industries.”

They’re keen to emphasise Channel 4 will remain a public service broadcaster, just like ITV.

Cash from the sale will be reinvested on a “creative dividend”*, putting money into independent production and “levelling up wider creative skills”. *Presumably Peter Mannion will be charging DCMS for that one…

We don’t know yet what format the privatisation of Channel 4 will take. If the government has any sense it will go for a people’s privatisation and sell the shares directly to the public at a discount with preference given to allocating to applicants for smaller shareholdings. Though given Rupert Murdoch is launching his new TalkTV channel, he might fancy a terrestrial broadcast vehicle for it…