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ITV to buy UTV TV assets for $154m

UK commercial broadcaster ITV has reached an agreement to buy the TV business of Northern Irish network partner UTV for £100m (US$154m).

Adam Crozier

Adam Crozier

UTV Media revealed it was in talks with ITV over the sale of its TV assets in August.

ITV has now reached a conditional agreement following the poor performance of UTV Ireland since its launch in January, with the channel projected to make a £11.5m loss in its first year.

The deal marks another regional broadcaster that holds a Channel 3 licence coming under the ITV umbrella. Only Scotland’s STV remains an independent Channel 3 regional broadcaster in the UK and Ireland.

UTV chairman Richard Huntingford said: “The last few years have seen increasing consolidation in the global television sector, creating media companies that span content, broadcast and platform ownership.

“Having successfully extended the reach of our television business with the launch of UTV Ireland, I believe shareholder value can be maximised through our television interests becoming part of ITV’s global broadcast and content business.

“The price reflects the inherent value within the UTV television business. ITV will be a good owner of the business and, with its scale and reach, will be able to accelerate the future growth of the business. I want to thank all the UTV Television staff for their outstanding service to UTV over many years, and I wish them every success in the future.”

ITV recently acquired Dutch production outfit Talpa for £355m, as well as a raft of prodcos in the US and UK.

ITV CEO Adam Crozier added: “UTV Television’s strategic objectives are closely aligned with our own and we are very pleased it is joining ITV family. We are looking forward to working with the team going forward.”

Fledgling channel UTV, which is planning a major rebrand, had struck a deal to snatch away long-running ITV soaps, such as Emmerdale and Coronation Street, from Liberty Global-owned rival TV3 prior to its launch.

While more than 40% of its ratings come from those shows, the channel is failing to make up the audiences elsewhere. Just 73,000 viewers tuned in to watch its first homegrown news programme, Pat Kenny’s Out With the Old – In With the U, in January, and the series was cancelled earlier this month.

The acquisition will see UTV retain its radio businesses, UTV Radio GB and UTV Radio Ireland, and its digital media businesses, Simply Zesty and Tibus Digital.

Huntingford added: “As the UTV Pension Scheme will remain with UTV Limited, this removes any future funding liability from the continuing group, and our shareholders will benefit from a significant return of cash. We plan to continue to pursue our successful strategy in our radio businesses.”

The sale is subject to regulatory and UTV Media shareholder approval. It will be financed through existing cash and debt facilities.

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