ITV in talks to buy group behind The Traitors and Fleabag
ITV is currently engaging in discussions to acquire All3Media. All3Media holds ownership over multiple production companies that are responsible for creating popular television programs like Fleabag, The Traitors, and Wild Isles. This acquisition would further expand ITV's studio division.
On Friday, the FTSE 250 broadcaster made an announcement in the stock market stating that it is having conversations with the joint owners of All3Media, which are the US media companies Warner Bros Discovery and Liberty Global.
Carolyn McCall, the top boss of ITV, is working hard to expand the company's earnings beyond the television advertising sector. It's anticipated that the UK economy will slow down even more, creating a decrease in TV advertising revenue. However, the interest in fresh content around the world is still thriving.
Reuters reported that talks are underway that could result in All3Media being valued at £1bn. The source claimed that Liberty may enhance its current 9.9% stake in ITV, while Warner Bros might sell its stake as one of the possibilities being considered.
ITV has made a statement confirming that they are currently looking into the potential acquisition of All3Media.
In 2014, All3Media was acquired by Discovery and Liberty Global for a total of approximately £550 million. Famous for producing hit shows like Gogglebox, Midsomer Murders, and The Only Way is Essex, the company recently achieved its highest revenue year yet in 2021, generating an impressive £867 million.
In 2003, All3Media was established and has been expanding by buying production companies in various categories and parts of the world. They have production companies in countries like the UK, US, Germany, the Netherlands, Belgium, and New Zealand. A central office manages activities such as finance.
This would be in line with the ITV Studios division, known for producing programs like Love Island and Line of Duty. In the last quarter of 2022, ITV Studios saw their highest-ever revenues of £458m. In early 2023, their revenues continued to remain stable, which helped lessen the impact of a 10% decrease in advertising sales.
TV channels like ITV that rely on advertisements as their primary source of income are facing challenges due to inflation and increasing interest rates. This has resulted in advertisers reducing their campaigns due to concerns of a potential economic downturn.
Additionally, McCall has faced the consequences of the exit of the previous prominent host Phillip Schofield from the This Morning program. In the previous month, Schofield resigned from This Morning following his confession of lying about an "unwise, yet legal" extramarital relationship.
