BBC Co. Ltd.

The BBC and Channel 4, both public broadcasters in the UK, are holding preliminary talks with the government about merging some of their operations, according to two people familiar with the matter. If realised, it would amount to a large-scale restructuring for Britain's public broadcasting industry. One of the proposals under discussion would see Channel 4's advertising business, its channels such as E4 and Film4, and its video streaming service combined with UKTV, the BBC's commercial subsidiary, with the newly envisaged entity owned 50-50 by the BBC and Channel 4. That would be a deeper tie-up than the plan BBC Director-General Matt Brittin has previously set out for offering Channel 4 content on the BBC's iPlayer streaming service. The talks are expected to intensify next year if the BBC makes progress in negotiations with the government over a new funding system, and the range of assets folded into the joint venture could also expand. The joint venture under consideration, meanwhile, is not expected to include Channel 4's flagship terrestrial channel, which may receive a fee from the venture.