UK broadcaster ITV could be the target of a number of potential takeover bids according to a report.
Sky News claims a number of potential bidders are circling the broadcaster, with both CVC Capital Partners and a “major European broadcaster, thought to be France’s TF1,” considering making offers.
The report adds that no formal approaches have been made yet, but ITV CEO Carolyn McCall is said to have been discussing the merits of a “demerger or other form of separation of its two main business units.”
“At the right price, it would make sense if CVC wanted the undervalued production business, with TF1 wanting an English language streaming service in ITVX, along with the cashflows of the declining channels,” one industry veteran told Sky News.
The report suggests other suitors are eyeing ITV Studios production arm, including RedBird Capital-owned All3Media and Mediawan.
ITV’s share price has rallied significantly following the report, up 6 per cent since trading opened on the FTSE this morning.
Should one of the bidders be successful, it would be “hugely significant” for the UK TV industry in terms of jobs and decision-making, analyst Alex DeGroote tells TVBEurope.
“ITV is still the mass market free-to-air TV platform in the UK, which is a large economy,” he adds. “In addition, there is a well-scaled Studios business, which operates internationally. Do not forget ITV is also the main provider of programming to the ITV network, including news and local content.”
