Former OFT Director To Advise On ITV Merger

Granada has hired John Bridgeman, a former director general of the Office Of Fair Trading (OFT), to advise it on the tricky regulatory path to its proposed merger with ITV partner, Carlton (see ITV Merger Set For Competition Commission Referral).

It is understood that Bridgeman is one of a number of influential figures to have spoken to the two broadcasters since last summer.

The merger raises serious competition issues and the authorities are expected to face fierce lobbying from advertisers who fear the united company will create a monopoly (see ITV Facing Heat From Advertisers As OFT Deadline Looms).

However, supporters of the proposal suggest the cost-savings of the deal are the only way ITV can increase programme investment in order to adequately compete with a cash-rich BBC.

Advertisers will be watching the developments with interest and the majority of media pundits and analysts believe it is almost inevitable the merger will come under the scrutiny of the Competition Commission.

However in an ironic twist, ITV’s recent weakness may help the broadcaster push the merger through. The growth of BSkyB, Channel 4, Channel 5 and the BBC’s Freeview have made the broadcaster less dominant and its market position less secure.

In fact, in a recent research note Morgan Stanley cited ITV1’s declining power ratio and claimed that Freeview’s popularity is hastening ITV’s loss of audience share (see Freeview Launch Hits ITV Harder Than Expected). This may help persuade regulators that a combined ITV would not be a shark; just a slightly bigger fish in the ever-increasing multi-channel pond.

Granada: 020 7620 1620 www.granadamedia.com

Carlton: 020 7663 6363 www.carlton.com

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