17th Oct 2022 09:48
(Alliance News) - ITV PLC is considering selling off a stake in its ITV Studios arm, which produces shows such as Love Island, the Financial Times reported on Sunday.
Citing people familiar with the discussions, the FT said ITV has fielded "expressions of interest" in the production division.
The FT noted that some analysts have put a price tag on the unit that is chunkier than ITV's own market capitalisation, currently about GBP2.68 billion.
ITV Chief Executive Carolyn McCall is not happy that the unit has been overlooked by the market.
However, an insider told the FT that a full sale of ITV Studios is unlikely amid reluctance to break-up the company's broadcaster-producer model. ITV also has its Media & Entertainment arm, which is home to its family of channels and distribution platforms.
However, the gap in valuation means a full sale is an option that is difficult to ignore, the FT said.
Possible buyers include production company Fremantle, owned by RTL Group SA and also FL Entertainment NV. FL is the parent of Banijay, which has produced shows such as Big Brother and Deal or No Deal.
https://www.ft.com/content/a5721ba7-837c-4b17-a265-eda3c2bfa7a1
ITV shares were 8.5% higher at 66.53 pence each in London on Monday morning.
By Eric Cunha; [email protected]
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