Carlton And Granada Plan To Integrate News Operations
ITV partners Carlton and Granada are considering plans to create a division to combine their regional, national and international news operations as part of their proposed £2.6 billion merger.
The news operation would sit alongside separate departments for production and broadcasting due to be outlined later this year in an official merger document on the structure of a single ITV company.
The merger is still being scrutinised by the Competition Commission, which is expected to announce its findings to Trade and Industry Secretary, Patricia Hewitt, at the end of next month (see Competition Commission Delays Verdict On ITV Merger). However, the integration strategy is said to be ‘well advanced’ for the merged ITV company.
Reports suggest that each division will have its own chief executive, with Granada and Carlton directors, such as Mick Desmond and Clive Jones, who are currently joint managing directors of ITV, expected to run for the top positions.
A spokesman for Carlton today confirmed the ITV partners are considering the creation of three distinct divisions, but emphasised that any plans for the merged company are subject to change.
If the merger is given the go ahead, months of negations between Carlton, Granada and the Office of Fair Trading will could follow on how to implement any concessions recommended by the Competition Commission.
The concessions are likely to focus on Carlton and Granada’s sales operations, which together control more than 50% of the television advertising market. The Competition Commission has suggested the sale of one, or both of the broadcasters’ sales houses as a remedy to the merger (see Competition Commission Delays Verdict On ITV Merger). However, Carlton and Granada are understood to be opposed to this and have suggested a number of solutions to ensure advertisers are not forced to accept less favourable terms (see Competition Commission Delays Verdict On ITV Merger).
Last month advertisers warned that the proposals to link advertising rates with audience figures in an attempt to secure approval for the planned merger, would not go far enough to address their competition concerns (see Advertisers Wary Of Revised ITV Merger Plans).
Carlton: 020 7663 6363 www.carlton.com Granada: 020 7396 6000 www.granadamedia.com
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