RedBird IMI Criticises UK Regulations after ITV Studios Deal Collapse

Jeff Zucker, chief executive of Abu Dhabi-backed investment fund RedBird IMI, has issued a stark warning on the state of the UK’s regulatory environment after his group abandoned plans to acquire ITV’s production arm. Zucker singled out Britain’s stringent rules as a deterrent to investment, arguing that red tape is stifling ambition and hampering innovation in the UK’s media sector.

Zucker explained that RedBird IMI had been in advanced discussions to merge All3Media — producers of hit series The Traitors and acquired for £1.2bn in the previous year — with ITV Studios. The deal could have marked a significant transformation in the UK’s television production landscape. Talks ceased several months ago, with the fund now stepping back from the negotiations.

The former CNN boss expressed a strong desire to continue investing in Britain, pointing to impressive growth prospects for media businesses. However, Zucker insisted that unless capital rules and listings requirements on the London Stock Exchange became more competitive, London would not be the first choice for taking such companies public. Recent figures underline this challenge: London’s number of initial public offerings in the first half of the year fell to its lowest in three decades.

Zucker’s comments echo mounting concern among business leaders as the UK stock exchange faces a drought in new listings and a steady outflow of established companies. Xavier Rolet, former London Stock Exchange chief, previously described the market as “deeply uncompetitive,” warning of an exodus to US exchanges unless urgent reforms are introduced.

RedBird IMI’s withdrawal is a setback for ITV, which is seeking ways to revive a flagging share price as traditional television audiences shrink. The broadcaster’s ITV Studios division, responsible for hits including Mr Bates vs The Post Office and Rivals on Disney Plus, has become a crucial engine of growth. Industry rumours value ITV Studios at around £3bn — equivalent to ITV’s entire market capitalisation — making it the target of increasing interest from international buyers such as Banijay, the French production powerhouse behind Peaky Blinders and MasterChef.

Political scrutiny has also trailed RedBird IMI’s activity due to its failed attempt to purchase The Telegraph and subsequent delays in finding a new buyer. The collapse of talks with ITV will likely intensify debate over the openness, attractiveness and future direction of the UK market for major international investment.