Whats Next For Channel 5 As Paramount And Skydance Deal Triggers Uncertainty

Amid corporate intrigue and shifting ownership, the future of Channel 5 hangs in the balance as Paramount edges closer to merging with Skydance. The deal, backed by billionaire Larry Ellison and RedBird private equity, has prompted speculation about whether the UK broadcaster will be sold off or might even play a role in acquiring bigger competitors.

Sarah Rose, appointed president of Channel 5 in early 2024, finds herself at the centre of these seismic changes. Rose made a strong case for investing in a major rebrand and marketing drive for Channel 5’s TV channel and streaming service just as Bob Bakish, former Paramount chief executive, unexpectedly departed. Despite the upheaval, Rose managed to secure the funding needed to proceed with her strategy.

Paramount’s new co-chief executives have since overseen a period of corporate turbulence, culminating in the announcement that Shari Redstone would sell her Paramount stake as part of an £8 billion deal with Skydance. Although Paramount’s US-based streaming and film-making ventures appear to be the new owners’ priority, Channel 5 is generating healthy profits and has expanded its revenues from £322 million in 2015 to £398 million in 2023, posting an operating profit exceeding £100 million last year.

Industry figures are divided about the likely fate of Channel 5. Some predict that the broadcaster could be offloaded, with overtures welcomed from potential buyers such as Sky, ITV, DAZN, or even Apple. Media research leader Claire Enders, however, remains confident that Channel 5 will not be sold and points to Rose’s leadership as a strong asset under new ownership.

Channel 5 continues to invest in accessible, British-rooted programming under the guidance of Ben Frow, its director of programming known for delivering strong content on a relatively modest commissioning budget of around £200 million. Popular shows have included ‘All Creatures Great and Small’ and the recently acquired rights to Club World Cup football matches.

With rumoured consolidations in the British broadcasting landscape and changing patterns of viewer engagement, questions mount over whether Channel 5 will stand alone, become a vehicle for consolidation, or astonish the sector by acquiring rivals. As the Ellison-backed Skydance Paramount deal nears completion, all eyes are on Rose and her next moves in a rapidly transforming market.