Elstein’s ITV Bid Boosted By Hallmark Link
David Elstein’s potential bid for ITV has been boosted by reports he has received tentative backing from US entertainment giant Hallmark.
According to reports, Elstein has set up camp in Hallmark’s London offices to thrash out an alternative management plan for ITV, as Carlton and Granada remain on the cusp of a merger decision from the Department of Trade and Industry (DTI).
It is claimed that Elstein has held talks with Hallmark to lay out his proposals for the beleaguered broadcasters, which he believes will save over £100 million a year.
It is further understood that the US broadcaster wishes to take a shot at acquiring a substantial slice of shares in either Carlton and Granada. However, any major manoeuvres will be postponed until after the DTI verdict is announced.
Hallmark’s interest has been interpreted by some media commentators as a sign that Elstein’s plans for ITV are “gaining momentum”. However, others have warned against reading too much into the reports, claiming that the “Elstein show” is passing through a number of big bucks broadcasters, including Time Warner and Viacom, as the experienced TV executive touts his agenda.
Analysts have questioned the likelihood of a share buy-out by US entertainment giants such as Hallmark on the grounds that the shares are too expensive. In particular, concerns have been raised over ITV’s diminishing power ratio in the multi-channel marketplace, which some analysts believe is not priced into Carlton and Granada’s share price.
Elstein’s proposals for ITV have been met with derision by critics and ITV’s joint managing directors recently attacked his plans to split off their ad sales departments (see ITV Chiefs Dismiss Ad Sales Proposal).
ITV: 020 7843 8000 www.itv.com
Recent Television Stories from NewsLine Granada Dismisses Elstein’s Merger Savings Calculations ITV Axes SM:TV Live After Five Years On Air BBC Should Sell Its Most Popular Programmes
Subscribers can access ten years of NewsLine articles by clicking the Search button to the left