Amazon, Netflix and Apple rumoured to approach ITV shareholders about GBP 12bn bid - report
Apple [Nasdaq:AAPL], Netflix [Nasdaq:NFLX] and Amazon [Nasdaq:AMZN] are rumoured to have been sounding out ITV’s [LON:ITV] biggest shareholders about a potential deal for the UK-based television group, the Evening Standard reported. The unattributed City-based rumour suggested the giant North American companies are prepared to offer GBP 3.00 per share to acquire ITV, giving the British broadcaster a valuation of approximately GBP 12bn (USD 15bn).
The report noted longstanding rumours that ITV is also a takeover target for the international media group Liberty Global [Nasdaq:LBTYA]. Unspecified sources cited in the piece said news of interest from rival would-be acquirers of ITV may motivate Liberty - already an almost 10% shareholder in the company - to essay a full takeover.
ITV has a current market capitalisation of GBP 8.1bn.
Market report: Buzz in Square Mile as US suitors eye ITV takeover
Chatter in the Square Mile that Liberty Global could buy out ITV is nothing new, but rumour has it that the Virgin Media owner may face competition from some of the world’s largest companies.
The word on the street is that major shareholders of ITV have been sounded out by tech giants Apple, Amazon and Netflix about a possible takeover.
They are thought to have been enticed by the cheap pound and ITV’s production arm — behind shows such as Mr Selfridge and which has been growing over the past few years through acquisitions.
The gossip suggests the US giants are willing to pay 300p a share, valuing ITV at around £12 billion.
That’s 50% up on the present share price, which edged down 1.1p to 200.2p today, although ITV’s shares were trading as high as 268p at the end of 2015 before collapsing amid concerns about TV advertising spending.
Sources said the purported interest could prompt Liberty, which has built a near-10% stake in ITV, to make a move for the entire company.
ITV, Amazon, Apple and Liberty said they did not comment on market speculation. Netflix did not respond for comment.
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