ITV’s loss of independence would be a blow to creative Britain, says ALEX BRUMMER

The possibility of a bid for ITV has buoyed the price of lagging shares. Still, as a creative company, Britain’s leading terrestrial broadcaster appears hugely undervalued.

Consider this. Almost all the notable shows on the small screen today originate from ITV Studios.

The list includes BBC series Ludwig starring David Mitchell, Netflix hit Fool Me Once and Disney’s Rivals, as well as the politically explosive Mr Bates Vs The Post Office.

The biggest changes at ITV since Carolyn McCall took the helm in 2018 are the group’s revenue streams. Revenue from ITV Studios and streaming service ITV X increased from 45 percent to 60 percent and is expected to reach 66 percent in 2026.

If ITV Studios were priced at the same multiple as All3Media, sold to RedBird IMI in May this year, it would be worth more than £3bn.

This is more than the total for the broadcaster, which is valued at £2.5bn following the latest rise of 8.6 per cent to 71.15p in the group’s shares.

If a bidder were to emerge, it would take control of a broadcasting platform, with the capacity to attract large-scale audiences and linear advertising to match, for free.

ITV is a benchmark for the United Kingdom and in recent years it has suffered the same shocks as the rest of Great Britain: the great financial crisis, Covid-19 and the war in Ukraine.

The prospects of recent months have been damaged by the long interregnum between the Labor election and the budget. Both have caused big business advertisers to scale back their plans.

There are few better ways to reach a large-scale audience than ITV.

I’m a Celebrity, Get Me Out of Here has attracted audiences of 9 million. Perennial favorites like Coronation Street are gold dust for advertisers.

So far there has been no observable change in ITV’s share registry.

The largest share, at 10.45 percent, is held by John Malone’s growing media empire, Liberty Global. He and his shrewd lieutenants would not want ITV to be sold cheaply.

Activist investors listed on the registry, such as Redwheel and Silchester, might have a different opinion.

There must be a chance that someone wants to see spin-off studios as a way to unlock value.

The private equity company CVC, mentioned as a bidder (there has been no approach), could want to take over some of the sports rights.

Buying an MOT is not as simple as it seems. The group’s license, valid until 2034, contains obligations. These include generating production in UK regions and dedicating airtime to news bulletins.

Most importantly, however, the loss of ITV’s independence would be a huge blow to creative Britain. This, just at the moment when the Labor Government has remembered that it is a sector that stands out and is prepared to grow.

pink panthers

The most shocking aspect of Barclays’ agreement to pay a £40m fine to the Financial Conduct Authority (FCA), over the bank’s fundraising in Qatar in 2008, is the time it has taken to apply the discipline.

Excuses can be given for the delays, including parallel processing by the equally useless Serious Fraud Office (SFO), but 16-year-old white-collar justice is a waste of space.

Barclays’ board has since been replenished and the bank has had to face another crisis over former boss Jes Staley’s connection to deceased sex offender Jeffrey Epstein. In terms of balance, the payment is a rounding error.

The British system of financial control is lamentable. A damning report by MPs and Lords accuses the FCA of being “incompetent at best and dishonest at worst”.

Instead of delivering swift and firm white-collar justice, the SFO is left with multi-million-dollar legal costs for the botched prosecution of the Eurasian Natural Resources Corporation (ENRC).

Such humiliations have made British financial justice a laughing stock.

carbon removal

Anglo American is proving that self-help is preferable to selling out to a major foreign rival that would have crushed culture and ambition.

The sale of Australia’s remaining steel coal mines to Peabody Energy, once part of British conglomerate Hanson, frees up £3.1bn for investments in copper and other ventures. The next De Beers?