ITV, RedBird IMI reportedly in early-stage talks to merge production arms

UK commercial broadcaster ITV and private investment company RedBird IMI are reportedly in early-stage talks about potentially merging their production businesses.

Jeff Zucker

Referencing “two people with knowledge of the situation,” discussions have centred on merging ITV Studios (ITVS) with All3Media, according to Reuters.

RedBird IMI, led by former CNN chief Jeff Zucker and backed by Emirati royal Sheikh Mansour bin Zayed Al Nahyan, acquired European production and distribution group All3Media for £1.15bn (US$1.45bn) last year.

Prior to RedBird IMI’s acquisition of All3Media, ITV had also been exploring the possibility of acquiring the production group.

The sources on these latest discussions said one route would be for ITV to separate out its broadcast business and merge ITVS with All3Media, with both ITV and RedBird IMI holding stakes in the new entity. They did, however, say talks are at an early stage and may not lead to a transaction.

If ITVS and All3Media were to combine, they would become one of the largest production groups in Europe, with revenue of around £3.18bn based on 2023 figures. The two companies and their many labels are responsible for programmes including hit formats Love Island and The Traitors.

Rumours of a possible sale of ITVS have been circulating for some time. Last November, reports emerged that several potential bidders were weighing up offers for all or parts of the business. The potential bidders included All3Media, KKR-backed French prodco Mediawan and private equity firm CVC Capital Partners, the latter possibly in conjunction with France’s TF1 Group.

ITV said it had nothing to add at this stage to the latest reports.