Channel 4 sale off the table after Culture Sec PM says ‘there are better ways to ensure sustainability’

Channel 4’s privatization is off the table.

British culture secretary Michelle Donelan wrote to Prime Minister Rishi Sunak, according to a leaked letter The News Agents Journalist Lewis Goodall said on Twitter: “Seeking a sale at this stage is not the right decision and there are better ways to ensure Channel 4’s sustainability.”

Donelan wrote the letter yesterday seeking “the approval of the Home Affairs and Economic Affairs Committee” for a sustainability package, with Sunak expected to green light the proposals as a formality.

Donelan, who has been in office since September, reviewed the business case for the sale approved by her predecessor Nadine Dorries last year, with the network valued at around £1 billion ($1.2 billion) at the time. The move was met with major backlash from Britain’s manufacturing sector, several A-list talents and rival politicians, who likened it to cultural vandalism.

Instead, Donelan plans to unveil a “sustainability package” to ensure Channel 4 “addresses the challenges facing the evolving media industry,” according to the leaked letter.

Part of this sustainability package will be a major change to Channel 4’s business model, giving the network the ability to produce its own content for the first time. Donelan said this would be done in consultation with the UK’s independent production sector, many of whom have long relied on the sale of their Channel 4 programs worldwide to support their business – something they would lose if Channel 4 sold its programmes. will take over. . The protection is likely to remain in place for smaller independent producers, but the move will have far-reaching consequences.

A new statutory role for Channel 4’s board is also being introduced “to have a clear focus on the long-term sustainability of the business” and Channel 4 has agreed to increase its investment in skills and expand countries and regions, he added Donelan about additional package. Her proposal sees Channel 4 double the number of jobs outside London from 300 to 600 and increase investment in skills from £5 million ($6 million) to £10 million ($12 million).

“Overall, I want Channel 4 to make it clear that we expect them to be more sustainable, which the government will give them more tools to do, while they support and grow the creative sector optimize,” reads the letter to Sunak.

Some of the measures will be regulated by legislation, the education minister added, stressing that she wants rapid progress.

The move marks a complete departure from Dorries, who along with former prime minister Boris Johnson fully backed the sale of Channel 4, despite 96% of respondents opposing government consultation. Research has often shown that Conservative voters see a sale on Channel 4 as low on their priority list.

Dorries tweeted that “three years of progressive Tory government” would be “washed away” and cited Channel 4’s reversal as a factor along with watered-down laws on online harm and various other issues.

However, the broadcasting association Bectu was satisfied.

“A huge win for Channel 4, the public broadcaster and our creative industry. We strongly opposed plans to sell Channel4 and are happy for it to remain publicly owned,” the union tweeted.

A spokesman for Donelan’s Department of Digital, Culture, Media and Sport said: “We do not comment on speculation. The DCMS Secretary of State has made it clear that we are reviewing the business case for the sale of Channel 4. We will announce more about our plans in due course.”

Deadline has reached out to Channel 4 for comment.