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ITV takeover ‘likely within 18 months’
Posted By AndyDickens On 27-03-2015 @ 11:19 am In News | Comments Disabled
UK broadcaster ITV is likely to be taken over by a major US firm in the next 12 to 18 months, according to a leading media analyst.
Speculation has escalated in recent months that major US and European media firms are lining up to takeover ITV for a market value price of around US$10bn.
Last week Liberty Global, owner of Virgin Media and minority stakeholder in ITV, appeared to pour cold water on any such bid [2] by describing the UK broadcaster as “awfully pricey.”
But Alex DeGroote, media analyst at UK investment bank Peel Hunt, told C21 it was “75% likely” a major US company would launch a full takeover of ITV in the next 12 to 18 months, adding that Liberty could still be in the running.
His comments come as ITV continues its buying spree across the US, including paying US$360m for a controlling stake in Pawn Stars producer Leftfield Entertainment in May last year. The firm also bought [3] John de Mol’s Dutch prodco Talpa Media for £355m (US$531.7m) this month.
“I believe everything ITV has done since 2010 has been about making the company fit for purpose,” DeGroote said.
[4]“That basically means they’ve improved the content, audience share, finances and balance sheets. They’ve made acquisitions in the content space internationally with firms like Leftfield and have developed an emerging online pay interactive business.
“They’ve done all of those things very successfully and are nearing the end of their journey.”
DeGroote said US firms big enough to make a bid included Discovery, Viacom, CBS, Google, AT&T and Apple. He also said Liberty Global could still be interested, despite ruling itself out publicly.
“Because interest rates are very low, companies can borrow huge sums of money at the moment,” DeGroote added. “The cost of borrowing is absolutely nothing, ITV would be a very attractive candidate.”
Shares in ITV currently stand at around £2.50 but it is likely to be taken over for around £4 a share, DeGroote said.
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[1] Image: https://cdn.c21media.net/wp-content/uploads/2014/05/downton-abbey-season2.jpg
[2] any such bid: https://www.c21media.net/liberty-cools-itv-takeover-talk/
[3] also bought: https://www.c21media.net/wgae-criticises-itv-talpa-deal/
[4] Image: http://www.armozaformats.com/formats/studio_entertainment/yum_factor?c21storyboard
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