Discovery unlikely to bid for ITV because of BSkyB ad deal
Discovery Communications, the Nasdaq-listed media company based in Silver Spring, Maryland, is not likely to bid for UK-listed broadcaster ITV, a person quoted in The Observer said. The anonymous individual familiar with the American group’s thinking said a bid for ITV is unlikely because it would scupper a deal between Discovery and BSkyB; BSkyB handles Discovery’s ads and this helps facilitate a distribution agreement whereby Sky TV broadcasts Discovery channels, the report explained. The source said it is necessary to maintain good relations with BSkyB or jeopardise all pay-TV operations, and Sky would not be happy at the prospect of an ITV takeover.
The information was revealed in the course of an article focused on ITV’s takeover prospects; the company is thought likely to be the next targeted for takeover in the UK’s media industry by major US players, largely thanks to its strong content, the report said.
The Comcast-owned broadcaster NBC Universal and the UK-listed telecoms giant BT have also been tipped as possible acquirers of ITV, the report noted. It said analysts believe a bidding war could result in a GBP 12bn (EUR 15bn)-plus sale price for the company.
Source The Observer