ITV faces shakeup as Banijay Group considers takeover bid for the British broadcaster

The French media conglomerate Banijay Group, known for producing acclaimed shows such as Peaky Blinders and Grantchester, is reportedly exploring a potential takeover of ITV. Discussions have allegedly been initiated for either a full acquisition of the company or specifically its studio production arm, ITV Studios. The move comes amid ongoing speculation about a possible restructuring of ITV’s operations.

ITV Studios, which supplies content not only for ITV’s domestic broadcasting but also for global platforms including Netflix and Disney, has attracted notable interest from other parties. Previous contenders such as private equity firm CVC Capital and Abu Dhabi-based RedBird IMI are also linked to potential bids for the unit. Analysts suggest that ITV Studios alone could be valued at over £3 billion.

According to sources, Banijay would need to partner with co-investors to carry out the acquisition. However, neither ITV nor Banijay has issued comments about the rumours. ITV’s Chief Executive Dame Carolyn McCall has highlighted the group’s openness to strategic shifts, with ongoing reviews of their organisational structure being part of the company’s long-term planning. She has also emphasised the significant role ITV Studios plays in ITV’s overall market strategy, especially in its ability to promote new programmes swiftly through the network’s channels.

The timing of the potential transaction coincides with growing pressures on ITV, particularly within its advertising business, as the broader free-to-air market slows. Despite these challenges, ITV has reported resilient growth in the digital advertising segment, with the company’s media and advertising revenue edging up by 1% to £2.1 billion last year.

Shares of the broadcaster dropped by 4.3% on Monday, closing at 77.25p, amidst fresh speculation over a possible restructuring of ITV’s core operations. Media analysts at Enders Analysis have argued that any decision regarding the future of the company would need to balance potential gains from releasing untapped value within ITV Studios against the interdependencies created through the integration of its broadcasting and production businesses.

This relationship between ITV Broadcasting and ITV Studios remains critical to the company’s success. Approximately 60% of ITV’s audience viewing hours consist of Studios or sports-related programming, and around 74% of ITV Studios’ UK revenues come from its parent company. The outcome of these discussions could have a transformative impact on ITV’s operational and financial structure in the years to come.