Discovery, Inc. (NasdaqGS:DISC.A) is exploring a bid for Channel 4 that would challenge the BBC and ITV's dominance of British screens. Media sources said Discovery, which already owns a string of pay-TV channels in the UK, is holding informal discussions about a potential takeover of Channel 4 if ministers press ahead with a privatisation in autumn. The explorations may not lead to an offer, but are a sign of serious interest. Discovery's manoeuvres are viewed by television insiders as a particular threat to ITV. The combination of Channel 4 and its own share of the advertising market via channels including Eurosport and Really, would allow it to challenge for more favourable advertising deals. Discovery would gain an outlet to better exploit costly rights such as the Olympics without the need for a partnership with the BBC. Investment bankers are preparing to pitch ministers and officials for a mandate to sell Channel 4. Charles Gurassa, the broadcaster's chairman, has warned that privatisation would be "very harmful" to its public service remit. The potential process is being managed by UK Government Investments, which controls a portfolio of taxpayerowned businesses. An ongoing consultation has claimed that the broadcaster will struggle to survive on its own in the streaming wars and proposed changes to its remit to make it a more attractive commercial proposition. They include the ability to make its own programmes and own the rights associated with them, rather than rely entirely on independent producers as it currently does. A Discovery acquisition of Channel 4 would build on a global strategy of expansion into free-to-air broadcasting. Last year it acquired a German free-toair broadcaster and another in New Zealand, to add to assets in Scandinavia and Poland. Discovery previously bid for Channel 5 in the UK, but lost out to Viacom, the owner of MTV. City sources cautioned, however, that Discovery's interest in Channel 4 could be complicated by its planned $43 billion (£31 billion) merger with WarnerMedia, the owner of Succession maker HBO. That deal is not expected to be completed until the middle of next year.
Warner Bros. Discovery, Inc. (formerly Discovery, Inc.) is a media and entertainment group organized around two areas of activity:
- TV channel operation and broadcasting in the United States (62.8% of net sales): owned, at the end of 2021, 18 channels for the home, decoration, cooking, and lifestyle (Discovery Channel, HGTV, Food Network, TLC, Animal Planet, Investigation Discovery, Travel Channel, Science Channel, MotorTrend, DIY Network, Cooking Channel, Great American Country, OWN, etc.). The group also develops and operates Internet sites associated with the TV channel names or independent Internet sites (Food.com, FrontDoor.com, etc.);
- international TV channel broadcasting (37.2%).
Net sales break down by source of revenues between sales of advertising spaces (51%), content and audiovisual rights (44.4%) and other (4.6%).
The United States account for 63.4% of net sales.
WARNER BROS. DISCOVERY, INC. 
