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ITV confirms Comcast bid
US media company Comcast,
owner of Sky, is in talks to
acquire ITV’ s broadcasting
business
Reports in early November
suggested that Comcast, which
also owns assets including
Universal Studios, was in talks
to buy ITV’ s broadcasting arm,
which includes its TV channels
and streaming service ITVX,
but not ITV Studios. Morgan
Stanley and bankers from Robey
Warshaw are advising ITV on
a possible deal, according to
Bloomberg.
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In a Stock Market announcement, ITV said it noted the press speculation and confirmed that it is in preliminary discussions regarding a possible sale of its M & E business to Sky for an enterprise value of £ 1.6 billion(€ 1.9bn).
“ There can be no certainty as to the terms upon which any potential sale may be agreed or whether any transaction will take place. A further announcement will be made in due course if appropriate,” it added.
Any such deal would undoubtedly attract the attention of regulator Ofcom
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and other bodies, given the increased audience share the operation would have, and potential reduction of production commissioning but such concerns may be outweighed by arguments suggesting that such a combination is necessary in the face of competition from global streamers such as Netflix and Prime Video.
According to TMT analyst Paolo Pescatore, the plan“ defies logic”, given that Sky has been the dominant UK pay-TV market leader, with an extensive broadcast operation.“ It really doesn’ t need to buy
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ITV,” he asserts.
According to Pescatore, all roads lead to delivery via the Internet.“ The landscape is changing rapidly and will continue to do so. This could be an opportunity for Sky to feature more prominently in the free-toair space as part of a new line-up in the streaming world.”
Media analyst Ian Whittaker noted that a combination of Sky and ITV would mean they had“ 70 per cent plus” of the UK TV advertising market, which he said in normal circumstances would be rejected by regulators because of the dominance it would give them.
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EUROMEDIA 7 |