ITV considering selling part or all of production arm ITV Studios, report claims

ITV is considering selling a stake in its production arm ITV Studios (ITVS) or spinning it off entirely, according to a report by the Financial Times.

Carolyn McCall

The UK commercial broadcaster has recently fielded expressions of interest in ITVS, the FT report states, citing people familiar with the discussions.

ITV is “actively reviewing the future of its production arm,” which is one of the largest producers of scripted and unscripted shows in Europe and is behind shows such as Love Island and Bodyguard, to help lift its share price, according to the FT.

Among those with the heft to acquire ITVS would be various private equity groups, which have been increasingly interested in the international TV business, as well as its rivals such as France-based FL Entertainment, which owns production and distribution giant Banijay, and Germany’s Bertelsmann, owner of Fremantle.

An ITV spokesperson told C21: “The board of ITV continuously reviews opportunities to increase shareholder value, however we don’t comment on speculation.”

ITVS is home to 60 production labels in 13 countries including the UK, the US, Australia, France, Germany, the Nordics, Italy and the Netherlands, while its global distribution business sells its catalogue of more than 90,000 hours of content to broadcasters and platforms around the world.

The report quotes an “ITV insider” who said a sale “probably remained unlikely” because of longstanding resistance to breaking up the group’s integrated broadcaster-producer model, but the insider added that the high valuation of ITVS made the option “impossible to ignore.”

It comes as ITVS continues to grow in size, recently taking a controlling stake in UK-based natural history producer Plimsoll Productions, which has been behind shows such as A Year on Planet Earth for ITV.

ITV CEO Carolyn McCall said in July that ITVS revenue was up 16% this year, growing ahead of the wider market, as the production and distribution arm of the broadcaster continued to diversify its business.