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06/12/2006
NTL Drops ITV Bid
NTL has dropped plans to bid for ITV after its £4.7bn proposal was rejected by the broadcaster.
As expected by industry analysts rival BSkyB has swooped to take a blocking stake in ITV. According to news sources the decision has been welcomed by major shareholders in the cable group, who are keen for NTL to focus on its recent acquisitions.
In a statement NTL said that it had "no present intention of making an offer for ITV, as it believes a transaction between ITV and NTL is unlikely to be attained on terms acceptable to NTL."
Many in the industry have questioned the coupling of the two giants, one reason being ITV's history of being a free to view channel and NTL's as a subscription service.
NTL said last month that it was prepared to make a cash and shares bid for ITV worth 122 pence a share at November 9 prices. However ITV rejected the proposal from NTL as one with "little strategic logic."
NTL's plans were scuppered when BSkyB swooped to take a 17.9% stake in ITV at 135 pence a share.
NTL's shareholder Richard Branson has complained about BSkyB's move to the Office of Fair Trading and to media regulator Ofcom. Sir Richard described BSkyB's move as: "A blatant atttempt to distort competition even further by blocking any attempt to create a strong and meaningful competitor."
In a statement, Sir Richard said that BSkyB's move was a breach of competition laws and called on the OFT to intervene.
Industry analysts have said that it is likely to take months for regulators to make a decision and BSkyB has said it is confident its stake does not break any competition rules.
ITV has suffered a drop in audiences and advertising revenues amid growing competition from digital channels. The appointment of former BBC Chairman Michael Grade has been seen as a boost by the broadcaster.
NTL has said that it will continue to focus on integrating NTL, Telewest and Virgin mobile. The company will be rebranded in 2007 following its recent purchase of Richard Branson's Virgin Mobile group.
(DS)
As expected by industry analysts rival BSkyB has swooped to take a blocking stake in ITV. According to news sources the decision has been welcomed by major shareholders in the cable group, who are keen for NTL to focus on its recent acquisitions.
In a statement NTL said that it had "no present intention of making an offer for ITV, as it believes a transaction between ITV and NTL is unlikely to be attained on terms acceptable to NTL."
Many in the industry have questioned the coupling of the two giants, one reason being ITV's history of being a free to view channel and NTL's as a subscription service.
NTL said last month that it was prepared to make a cash and shares bid for ITV worth 122 pence a share at November 9 prices. However ITV rejected the proposal from NTL as one with "little strategic logic."
NTL's plans were scuppered when BSkyB swooped to take a 17.9% stake in ITV at 135 pence a share.
NTL's shareholder Richard Branson has complained about BSkyB's move to the Office of Fair Trading and to media regulator Ofcom. Sir Richard described BSkyB's move as: "A blatant atttempt to distort competition even further by blocking any attempt to create a strong and meaningful competitor."
In a statement, Sir Richard said that BSkyB's move was a breach of competition laws and called on the OFT to intervene.
Industry analysts have said that it is likely to take months for regulators to make a decision and BSkyB has said it is confident its stake does not break any competition rules.
ITV has suffered a drop in audiences and advertising revenues amid growing competition from digital channels. The appointment of former BBC Chairman Michael Grade has been seen as a boost by the broadcaster.
NTL has said that it will continue to focus on integrating NTL, Telewest and Virgin mobile. The company will be rebranded in 2007 following its recent purchase of Richard Branson's Virgin Mobile group.
(DS)
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21 November 2006
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ITV rejects merger approach by NTL
The Board of ITV has rejected a merger proposal from NTL as one with "little strategic logic." In a statement, the Board said it believed that "whereas there is obvious appeal to NTL in gaining control of ITV's substantial and successful business, from ITV's perspective there is little, if any, strategic logic for ITV to combine with NTL.
20 December 2007
Regulator Recommends BSkyB Downsize Stake In ITV
The Competition Commission has suggested that BSkyB be forced to sell its substantial 17.9% stake in ITV as it currently restricts competition in the TV market. The regulator also recommended that the Secretary of State, John Hutton should seek undertaking from BSkyB that it would not seek representation on ITV’s board.
Regulator Recommends BSkyB Downsize Stake In ITV
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09 November 2006
NTL expresses interest in ITV merger
Cable company NTL has expressed interest in the possibility of a merger with ITV. Shares in ITV jumped 8% following NTL's confirmation of exploring a merger. ITV has suffered a fall in revenue and viewer numbers in the face of strong competition from satellite offerings.
NTL expresses interest in ITV merger
Cable company NTL has expressed interest in the possibility of a merger with ITV. Shares in ITV jumped 8% following NTL's confirmation of exploring a merger. ITV has suffered a fall in revenue and viewer numbers in the face of strong competition from satellite offerings.
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