Analysts place £3bn valuation on UK-based production giant  

Ludwig

ITV Studios label Big Talk produces BBC smash Ludwig

Investors in ITV are broadly supportive of moves by the UK commercial broadcaster to sell its production and distribution arm ITV Studios, according to a report.

News that ITV was looking to strike a deal around ITVS first emerged in November, with companies including KKR-backed Mediawan and France’s TF1 Group among those interested.

Reuters then reported in January that the broadcaster was in early stage talks with Abu Dhabi-backed investment group RedBird IMI about a potential merger with All3Media.

Fellow private equity groups CVC and Blackstone are also circling ITVS, along with established industry players including Banijay, according to a Financial Times report yesterday (9 February).

However, the FT added the RedBird IMI deal is still seen as the “more likely option”, with investors supporting an ITVS sale as the parent company’s share price continues to languish.

Shares currently stand at 77p apiece, down from a high of 277p a decade ago, with the business holding an enterprise value of around £3.3bn. London-based financial firm MKP Advisors said ITVS could be valued at around £3bn, the FT added.

This is not the first time that splitting the production and distribution business of ITV from the channels and streaming operation has been mooted.

Analysts point to ITVS’ revenues and growth opportunitiy as being highly valuable to potential suitors, with the group home to shows including Rivals for Disney+ and BBC scripted hit Ludwig.