TV3 APPEARS to be edging closer to a deal to acquire Channel 6. It is understood that negotiations are well advanced and a deal could be inked in the next fortnight.

It is understood that Channel 6 founder and chief executive Michael Murphy is likely to remain with the business.

Industry sources said about €2 million could change hands, but it’s understood that the final consideration will have earn-out provisions built into the deal.

Channel 6 was launched in March 2006 and accounts for the year to the end of December 2006 show it had accumulated losses of €5.5 million.

More than €14 million was secured from private sector backers, who include the Barry tea family in Cork, Senator Feargal Quinn and venture capitalists ACT and Delta, but it needs fresh capital to stay on air. TV3, meanwhile, is keen to add another station to its Ballymount stable. TV3 already handles Channel 6’s ad sales and other costs will no doubt be shared.

While it hasn’t been a roaring success, Channel 6’s audience ratings have been nudging upwards.

Nationally, it has a 2.3 per cent share of 15-24 audiences – its target market – and a 4 per cent share in Dublin.

It reaches about 170,000 adults a day.

Channel 6 should fit the bill for TV3. It has valuable listings and distribution rights and some of its US programming might well be transferred to the terrestrial channel.

Both are in the light entertainment business with schedules skewed towards women and younger audiences.

Doing this deal makes a lot of sense.