ITV’s share price jumped on Monday after weekend reports that multiple companies had expressed an interest in ITV.
- Could lead to the break-up of ITV
- Investors haven’t been impressed by ITV’s performance
- ITV forced to cut costs due to poor advertising market
Shares in the UK’s biggest free-to-air broadcaster jumped on Monday as investors reacted to a report by Sky News revealing that multiple companies are poised to put in an offer for the company. The price reached 72p, undoing a slump earlier this month.
Investors were left with cold feet at the beginning of November, after ITV’s latest financial update confirmed flat advertising revenues. The broadcaster announced it would need to make £20 million of savings.
ITV confirmed it was expecting ITV Studios to make record profits in 2024, however financial data confirms a less rosy outlook for other parts of the business. Streaming service ITVX is still gaining ground, according to the limited stats provided by ITV. However, the broadcaster has become notably more cautious about revealing detailed stats in recent months.
Sky News suggests France’s biggest free-to-air broadcaster TF1 is considering its options. Other companies are interested, but may seek to split ITV in the process. Potential bidders may want to split the lucrative productions business, which makes programmes for a range of broadcasters and streamers around the world from the domestic TV and streaming business.
Who is interested in ITV?
The report identifies the following companies as considering an offer:
- CVC Capital Partners (Private equity company),
- All3Media (production and distribution company),
- Mediawan (French media conglomerate),
- TF1 (France’s largest free-to-air commercial broadcaster)
ITV has declined to comment.
ITV plc was officially created 20 years ago following the merger of Carlton and Granada in 2004.
By: Marc Thornham | Image: ITV