ITV ‘no longer’ exploring £1bn bid for Fleabag maker All3Media
ITV has pulled out of a potential acquisition of All3Media, amid concerns any deal would not represent fair value for money.
The broadcasting giant has announced today it is “no longer actively exploring the possible acquisition” of the film and television company.
This follows ITV confirming interest in the producer of popular shows such as Fleabag, Googlebox, Midsomer Murders last month – with reports suggesting a sale would generate more than £1bn,
While ITV says it “continues to monitor” the situation, it also argued it has to assess “all potential value-creating M&A opportunities against its strict financial criteria and disciplined capital allocation framework.”
ITV has its own production business, ITV Studios, which makes reality show Love Island amongst other programmes.
Liberty Global and Warner Bros Discovery acquired All3Media in 2014 for £550m.
Formed in 2003 and currently led by chief executive Jane Turton, the producer has expanded from 20 labels to 50 across six countries and three continents.
Its labels include Hollywood director Sam Mendes’ production company Neal Street, Studio Lambert and Lime Pictures.
Last year, the company invested in sports production outfit 3 Rock.
Danni Hewson, head of financial analysis at AJ Bell said “a month after saying it was looking at buying Gogglebox maker All3Media, ITV has done a U-turn and said the deal is not happening.
“This comes a day after reports that All3Media customer Channel 4 was unhappy about the potential acquisition by ITV, saying it would harm competition in the market.
“While there was clear strategic logic in owning the business, as it would help to beef up ITV’s production and content capabilities, perhaps the broadcaster thought it would be too complicated a deal to get past the competition authorities.
“With the prospect of a downturn in advertising on the horizon, ITV’s management already has enough on its plate without the distractions of trying to push through a big acquisition.”