ITV ‘keeping all options open’ amid reports of talks over ITV Studios deal
The group is speculated to have held early discussions to merge the business with rival All3Media.
Broadcasting giant ITV has said it will “keep all options open” amid speculation over a possible £3 billion merger deal for its production arm.
The group behind hit TV shows including Britain’s Got Talent and Love Island declined to comment on whether it is in talks to potentially merge its ITV Studios business with rival All3Media, which is owned by Abu Dhabi-backed investment group RedBird IMI.
But chief executive Dame Carolyn McCall said: “Every board everywhere has to keep all options open and our board is no different.
“We review everything and review it regularly.”
It comes after reports suggested ITV is mooting a tie-up of ITV Studios with All3Media, which could create a production group worth more than £3 billion.
All3Media owner Redbird IMI is the investment firm that the UK government blocked last year from owning the Daily Telegraph newspaper.
ITV’s annual results on Thursday revealed record earnings for ITV Studios after a year that saw it deliver hit shows such as Mr Bates – which it claims was the biggest drama in the UK in 2024 – as well as Netflix success Fool Me Once.
ITV Studios saw underlying earnings rise 5% to a record £299 million, despite revenues slumping 6% to £2.04 billion, as it continued to take a hit from the 2023 US actors and writers strikes, as well as softer demand from free-to-air broadcasters.
ITV announced plans for further cost cutting as savings and the production earnings helped it notch up a hike in annual profits.
It said it stripped out £60 million of costs last year, £10 million more than expected, and is looking to make another £30 million in savings over 2025.
It said there is not set to be any impact on jobs this year from the cost savings after its overhaul saw it shed more than 220 roles in 2024, largely from its media and entertainment division.
It reported a 19% jump in pre-tax profits to £472 million for 2024, while total advertising revenue (TAR) lifted 2% to £1.82 billion.
But the group said TAR is expected to remain largely flat in the four months to the end of April.
Ad revenues will also be affected in June and July as it comes up against tough comparisons from a year earlier, when ad sales were boosted by the Euros football tournament.
