ITV’s major shareholders support management efforts to explore potential deals in the production sector as rival studios and private equity are currently circulating through one of Europe’s largest television studios.
ITV held early consultations with Redbird Imi, an Abu Dhabi-backed investment group that last year acquired British rival All3Media for over £1.1 billion, according to several people familiar with the situation.
The merger of ITV studios with All3Media has created a production group of over £3 billion, bringing together the UK studios responsible for shows from Love Island to Traitors and Rivals, with many streamers and broadcasters tightening their budgets Sometimes it gives negotiation power.
Both sides were having a conversation, people added, but these were in the early stages without certainty about progress or transaction. Redbird Imi, a boss based in New York, was in London in late January, in the form of investment supported by Abu Dhabi, who blocked the UK government from owning the Daily Telegraph last year.
Meanwhile, many other potential suitors are watching ITV studios, people said it includes private equity groups CVC and Blackstone. Rivals such as Banijay, one of Europe’s largest production groups, were also monitoring the situation, the two said.
Blackstone, CVC and Banijay all declined to comment.
The Redbird Imi contract was still considered a more likely option, and those familiar with the situation say ITV has been given a clear interest in merging with All3Media in the past Ta.
ITV, Redbird Imi and All3media declined to comment on the consultation.
ITV, led by CEO Carolyn McCall, lost to Redbird Imi at an All3Media auction last year.
ITV stock prices traded 13 years ago, and investors will be able to bring to Financial Times the management team to explore potential deals, considering the lack of value that comes with the broadcaster’s business units. He said he has support.
One shareholder said ITV was doing a good job investing in the television portion of the business, particularly online streaming, but this was not recognized in the market.
“ITV has the point that if the market cannot see its own value, ITV has to do something to make the studio business more clear,” the shareholder said.
Investors added that ITV can use revenue to buy back shares, such as deals and joint ventures involving studio businesses, such as selling all or part of the business.
They said: “If you’re underestimated and think there’s something you can do about it, you can’t sit tight forever.”
ITV’s biggest shareholder, Liberty Global, is the largest shareholder with about a tenth of its shares, and two people familiar with the idea that it supports management looking at business options. said.
Those familiar with Liberty’s position pointed out that the deal could potentially withdraw access to content talks for the US group of 10% of ITV stake or its broad business. Liberty Global declined to comment.
“If we put a conservative valuation multiple on the production side of our business, we get a valuation of around £3 billion,” said Mark Kelly, CEO of Financial Advisory Firm MKP Advisors.
Compared to ITV’s current enterprise value of around £3.3 billion, this meant that the company’s broadcasting side had traded near zero.
Once the contract is struck, it will mark the culmination of over a decade of speculation about the future of the business. The company regularly reviews business units, including the studio division, and as one person close to the group said, it has not moved towards breakup so far.
There is a compelling reason why ITV Studios is bringing hit shows like Love Island to stable broadcast shows and selling them elsewhere around the world, bringing them together.
But those who are familiar with ITV’s ideas, say, especially considering the financial logic of a company’s collapse that has more value in the market together, one person said. Ta.
Rival executives believe the deal potential is better than in the past few years, and McCall has been in the group for eighth year and could set a decisive legacy.
McCall said that anyone familiar with her ideas will likely see efforts to maintain the UK’s combined studio business, which remains in the UK. Ta.
Despite signs that ITVX, an investment in the growth of digital television platforms, will replace traditional linear broadcasting services that are declining, according to one person, two businesses, according to one who is comparable to the situation. He is also unhappy with the lack of value given to him. Be rewarded.
In its final set of results, ITVX reported a 14% streaming time increase by 14% over nine months and a 15% increase in digital advertising revenue.
Some shareholders support the move to consider M&A, but this time they need to be reassured that prices are suitable for the transaction. Last year, some people balked the high prices commissioned by All3media, according to people close to the situation.
Analysts say setting a clear future for the broadcasting sector is essential to any transaction. The UK government also allows the UK’s second largest public sector broadcaster (legally known as Channel 3, which is legally known as Channel 3, to naturally thrive to require the provision of “beneficial” content in law. I hope to do that.
Panmure Liberum analyst Johnathan Barrett said the separation “leads ambiguity about getting it right without any significant support from within ITV, ahead of the complexity of the Channel 3 licensing regime and public service broadcasting obligations. “He said.
