ITV shares jump as it emerges as a takeover target by private equity
ITV has emerged as a possible takeover target by private equity giants including CVC Capital Partners amid an ongoing dip in its share price, according to reports.
There are reportedly a variety of private equity bidders circling the UK’s largest terrestrial commercial broadcaster, Sky News revealed.
These included CVC Capital Partners with a major European broadcaster, potentially labelled as France’s Group TF1. CVC is expected to take over ITV Studios, while the broadcaster could take over the broadcaster arm, including streaming platform ITVX.
Other potential private equity acquirers also named in the reports included KKR-backed Mediawan and All3Media, owned by Redbird Capital Partners.
However, the sources who spoke to Sky News were clear that none of the bids had developed substantially, with one suggesting that ITV’s board had not yet received an unsolicited approach.
Stock at ITV was down 17 per cent over the last month, thanks to a substantial dip in revenue revealed in its quarterly results.
However, following the emergence of rumours around a takeover last week, ITV shares jumped more than 14 per cent.
In its results earlier this month, the broadcaster credited the drop in revenue to the phasing of deliveries, with more shows slated for the fourth quarter than the third, and last year’s US writers’ and actors’ strike.
It said it would seek additional cost savings of £20m, with £10m coming from a reduction in content costs and £10m of which will be the early delivery of non-content savings planned for 2025.
Chief executive Carolyn McCall said: “ITV’s good strategic progress has continued in the first nine months of 2024 driven by strong execution and industry leading creativity.”
“Our cost saving programme is progressing well and today we are announcing further cost savings in addition to the previously announced £40m of incremental cost savings through restructuring, improved efficiency and simplifying ways of working.”
ITV and CVC declined to comment.