Maybe the plan after all isn't for That's TV domination, but for a company to come in and buy all of the the licences for a quasi-national channel, while keeping a resemblance of local programming.
The impression I now get of That's TV is of being a caretaker company maintaining them at the bare minimum, while the big bosses of the company (and Local TV Ltd) rake in the cash out of this failure.
With Estuary gone next week, and STV2 shut down recently, aren't there now only a few indie locals left? Brighton's Latest TV, London Live, KMTV in Kent, Notts TV, Sheffield Live, and Belfast's NVTV? How much longer will those last?
As long as Northern Visions have enough funding to run their local channel, I suspect it'll plod along nicely out of the reach of Daniel Cass and That's TV, a similar thing for Sheffield Live, which is operated by the charity that runs a community radio station in the same area.
Latest TV appears to be run by a chap who also owns a venue in the town, which doubles up as the Latest TV studio and newsroom during the day. He also publishes free magazines in the town and a hyperlocal newspaper. Cass's money may be tempting, unless he's a stubborn person who'll keep it running as long as there's enough money across his businesses to keep it going.
London Live is the one that is almost certainly to be sold. Two Beards has held off from bids from That's TV. With London being the most valuable licence, with a target audience of 12m, it'll go to another organisation with more money than sense, which would price Daniel Cass out.