An Israeli tycoon is in the running to become the new owner of Channel 5.

According to a report in the Financial Times, Haim Saban, who owns investment firm Saban Capital, is preparing to bid for the channel and explore a possible merger with Channel 4.

Egyptian-born Mr Saban, whose firm owns Spanish broadcaster Univision, created the Power Rangers franchise.

Channel 5 owner Richard Desmond resigned from the channel's operating company last year.

He is said to be looking to sell for around £700 million.

Initial bids will be submitted on Thursday.

US media conglomerate Discovery Communications are reportedly in joint-bid talks with BSkyB to buy to channel.