ITV backs out of eOne bid

ITV will not be upping its bid for Peppa Pig owner Entertainment One

ITV has withdrawn its proposal to acquire Entertainment One (eOne) just over two weeks after its initial £1bn (US$1.3bn) bid was knocked back by the Peppa Pig owner.

The UK commercial broadcaster issued a statement to its shareholders this morning saying that although it still believes there is “strategic logic” in buying eOne, it would not be making a higher bid.

ITV “has a clear view of the value of the business, recognising that this value would need to be verified by appropriate due diligence. It appears this value is different to the level at which the board of eOne would currently engage in a more formal process,” the company said.

“ITV has a clear strategy to build a stronger, more diversified international business and will continue its disciplined approach to evaluating its healthy pipeline of potential investment opportunities.”

ITV is thought to have been eyeing the Canadian producer and distributor since the first quarter of this year, although rumours of takeover talks between the two were brushed off by eOne in April.

The firm, which has offices in Toronto, LA and London, has been pursuing a strategy to double in size since 2014 and has bought a number of firms over recent years, including Peppa Pig producer Astley Baker Davies and The Mark Gordon Company.

US-based private equity firm KKR & Co was linked to a bid for the firm last week following ITV’s interest.

ITV, meanwhile, has been on the acquisition trail since March last year, going on a buying spree that has seen it acquire UK indie Twofour, Poldark producer Mammoth Screen and John de Mol’s Talpa Media.

These buy-outs added to its string of transatlantic prodco acquisitions over the past two years, including Leftfield Pictures, Gurney Productions, High Noon Entertainment, Thinkfactory Media and Diga Vision in the US.