ITV suitors named
November 25, 2024

A number of suitors have been studying the merits of a takeover bid for ITV, the UK’s dominant terrestrial commercial broadcaster, after a prolonged period of share price weakness and renewed questions about its long-term strategic outlook.
Sky News reports that, in recent weeks, an array of “possible bidders” have held early-stage discussions about teaming up to pursue a potential transaction – either for all or parts of the business.
Investor CVC Capital Partners, British production and distribution company All3Media, French media conglomerate Mediawan and French broadcasting group TF1 are said to be among those considering an offer.
ITV’s share price jumped by 9 per cent to more than 70p in reaction to the news. However, the valuation is still far below the peak of more than £2.60 (€3.12) a share in 2015.
Russ Mould, an investment director at AJ Bell, commented: “A depressed valuation and relative weakness in sterling are the context for reports of bid interest in ITV – with the possibility of yet another domino falling in a UK market which has seen plenty of mergers and acquisitions in 2024. Several names from private equity and within the industry have been suggested as potential suitors – although nothing has emerged yet which has reached the threshold required for ITV to make any disclosures. Whether ITV’s public service broadcasting remit might be an obstacle to any deal remains to be seen.
“There is further speculation that ITV might look to demerge the business on the basis that the individual parts might attract a better valuations as standalone entities – particularly its ITV Studios production arm,” Mould added.