Channel 4 breaks off TV merger talks with Five

Merger talks between Channel 4 and Five have been called off, it was revealed today.

The two broadcasters had held a series of meetings to discuss a move to create a formidable rival to ITV.

But in simultaneous announcements both parties said the negotiations had been called off.

Channel 4's chief executive Andy Duncan and chairman Luke Johnson were said to have informed Five management yesterday afternoon. The decision was apparently finalised at a Channel 4 board meeting on Monday - and unanimously agreed.

Although a full strategic merger has been ruled out, Channel 4 is continuing to explore smaller-scale operational tie-ups with Five. Mr Duncan-said: "With concerns being raised about our future funding it was legitimate for Channel 4 to explore this merger.

"But there are other, better ways to ensure that Channel 4's unique DNA is preserved and that the channel not only survives but thrives in a fully digital-age." A Five spokesman commented: "Although the benefits of a merger would have been significant ... the complexity of combining a commercial and a publicly-owned entity, and the constraints on the likely structure, would have been too great."