ITV Digital is on the brink

ITV Digital is close to collapse after administrators Deloitte & Touche failed to secure further funding from owners Granada and Carlton. The ITV duo were prepared to offer a further £5m-£8m, but tried to impose conditions that Deloitte would not accept. These included having 'a last look' at the details of any sale, possibly to enable them to veto it.

It now looks as if ITVD will be closed within days unless suppliers such as BSkyB agree to provide services free until a deal can be agreed. Otherwise, there is just enough cash to run it through the weekend.

The administrators are now prepared to sell the assets bit by bit, but would prefer a single deal. The Independent Television Commission said it will take six weeks to decide whether it can award the digital licence to another party. Deloitte cannot wait that long and said it will accept the best offer it can get.

The BBC, Channel 4 and Channel 5 are considering joining forces to cherry-pick from the assets and ensure that their free digital channels will continue to be seen in the homes of customers.