Sharewatch: ITV Stumbles Despite GMTV Acquisition
A disappointing weeks trading amongst media stocks left all but a handful of companies facing negative growth in share price. ITV saw a decline of 0.92% week on week as the broadcaster announced the completion of a deal to acquire 25% of breakfast television franchise GMTV from the Scottish Media Group.
The deal gives ITV a 75% share of GMTV, with The Walt Disney Company owning the remaining 25% share. The broadcaster is the UK’s highest rating breakfast time programme and under the terms of the GMTV shareholders agreement, ITV is now obliged to offer The Walt Disney Company the same terms as SMG for its remaining 25% stake (see ITV Completes Acquisition Of GMTV).
BSkyB also saw a decline, losing 1.38% week on week to close at 500p on Friday. The company recently announced a continued deal with the Hallmark Channel to operate airtime sales for a further three years (see Sky Media And Hallmark Extend Airtime Sales Deal).
Elsewhere SMG performed poorly, losing 1.35% week on week, as the company announced the departure of Virgin Radio chief executive, John Pearson. The radio boss announced his intention to step down next year on Tuesday, claiming the need to re-address his work-life balance after more than a decade at the radio station (see Virgin Radio Chief Executive Steps Down).
The closing prices of media company shares on Friday were:
