I still think if TVS had gotten through, Its would have been merged with LWT pretty quickly and Southampton shut rather fast, News operations merged into LNN to cover the whole of the south east, playout moved to Kent house and many managers at TVS sacked. Maybe just maybe a new LWT/TVS Satellite channel might have come about.
They might have ended up as one company at some point, but not until TVS either slimmed down, or got into serious financial issues. LWT was a very thriving business at the time, they wouldn't have wanted to be burdened with the liabilities that TVS had.
As for news, that's unlikely. In those days local news was still valued in itv and was expanding. There would still have been seperate news services and still seperate news operations in the South.
Plonking the south in with LNN would have been problematic, remember it wasn't purely LWTs, whoever the weekday licensee was would have had a say over that.
As for a satellite channel, that's just fantasy