Sky News says early stage planning is taking place 

All3Media-owner RedBird IMI, KKR-backed Mediawan and France’s TF1 Group are among companies reportedly exploring offers for ITV and/or its production subsidiary ITV Studios (ITVS), according to Sky News.  

Sky said Jersey-based investment firm CVC Capital Partners and France’s TF1 Group are exploring a bid that could see CVC take ownership of ITVS, with the channels and streaming business ITVX moving into TF1’s stable. 

RedBird IMI and Mediawan, which acquired Leonine in April, have also been mooted as potential suitors for ITVS, which has driven revenue growth over recent years despite a decline in Q3 this year. 

Discussions are at very early stages according to Sky News, which added that ITV chief executive Carolyn McCall has held discussions with financial advisors about a potential demerger or separation. 

ITV has been unable to significantly shift its share price since summer 2022 and although it has fluctuated a little in recent months, prior to the sale speculation it was around 62p – almost exactly the same as it was in November 2023.  

ITV’s shares were up by more than 7% in early trading this morning (25 November) following news of the potential takeover bid over the weekend, valuing the company at £2.7bn. 

Ongoing discussions 

This is not the first time that splitting the largely-profitable production and distribution business of ITVS from the legacy channels operation has been mooted. 

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

Streamer ITVX, meanwhile, is also now supporting revenues as its linear business declines, with the company reporting 14% growth in streaming hours and 15% in digital advertising revenue in the first nine months of this year. 

The news of a potential sell-off comes amid a dynamic M&A market as groups look to consolidate, following a turbulent 18 months caused by ongoing softness in TV ad markets, streamer budget cuts and the long-tail effects of the Hollywood writers strikes. 

Reuters reported earlier this month that European giant RTL is looking at the future of its production and distribution unit Fremantle, for example.  

Earlier this year, Broadcast revealed that ITV’s M&E division would be restructured with jobs cut as part of a wave of measures to refocus the business and save up to £50m per year. 

The company then confirmed in its Q3 results in early November that it would be making a further £20m in cost savings following the strikes. 

Both Vertigo Films-owner Federation Studios and Slow Horses producer See-Saw Films are also in talks with sales advisors, as revealed by Broadcast.