Abu Dhabi Investment Firm Eyes ITV Studios Tie-Up Amidst Media Empire Expansion
IMI, the Abu Dhabi investment fund, is exploring a potential merger between All3Media, its independent production company, and ITV Studios. The move aims to create a film and television powerhouse valued at nearly £3 billion.
Discussions are in the early stages and may not result in a transaction. The deal reportedly excludes RedBird IMI acquiring a stake in ITV's regulated broadcasting arm, responsible for news output.
The talks come as ITV CEO Dame Carolyn McCall seeks ways to unlock value from the broadcaster, whose valuation has reached a 13-year low due to concerns over declining traditional broadcasting revenue.
IMI's parallel move of restructuring its news outlets, including The National and Sky News Arabia, suggests a strategic shift towards less controversial and more profitable entertainment content.
IMI's failed attempt to acquire The Telegraph, blocked by the UK government, has left the newspaper in limbo and prompted calls for a deadline on its sale.
All3Media, acquired by RedBird IMI in 2022, is responsible for popular UK shows like "The Traitors" and "Fleabag." ITV Studios produces hits such as "I'm a Celebrity... Get Me Out of Here!" and "Love Island."
The combined production entity would be valued at an estimated £2.8 billion. The merger would come amidst concerns from producers about increased competition from US streaming services and rising production costs.
ITV Studios and RedBird IMI have declined to comment on the discussions.