Carlton And Granada Merger Talks Could Be Back On
Carlton and Granada could re-open merger talks within the next few weeks following speculation that Carlton chief executive, Gerry Murphy, is leaving the company.
According to a report in today’s Guardian, Granada chairman, Charles Allen, is expected to push for the consolidation of the two ITV companies if Murphy leaves to take the top job at the Kingfisher retail group (see Carlton Denies Murphy Is Set To Leave).
Carlton has strongly denied rumours of Murphy’s departure, saying: “He is fully occupied with his position at Carlton and has not agreed to work with anyone else.” However, industry sources suggest his move could be imminent.
Murphy recently voiced concerns that the competition regulator would prevent the merger of the two companies, which control more than 50% of the TV advertising market. However, according to the Guardian, Allen believes that an acceptable deal could be agreed if Carlton and Granada kept their advertising sales separate.
Both Carlton and Granada have seen their share price fall recently and analysts predict that a merger, which could generate cost savings of between £40m and £50m, may be the only way to revive their flagging fortunes.
Earlier this year Murphy, announced that the two ITV companies are planning to merge parts of their back-office operations in an attempt to win back advertisers and cut costs. The announcement met with fierce criticism from ISBA, which accused Carlton and Granada of attempting to “merge by stealth” (see ITV Power Brokers Team Up To Stop The Rot).
The advertising body, which has long been concerned about the dominance that single ownership of ITV would have on the UK airtime market, said the pooling of operations could lead to information sharing between Carlton and Granada on their advertiser customers (see ISBA Voices Concern Over Stealth ITV Merger).
Carlton: 020 7663 6363 www.carlton.com Granada: 020 7620 1620 www.granadamedia.com
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