Charles Allen Threatens To Pull Plug On ITN

ITV chief executive Charles Allen has threatened to pull the plug on news provider ITN’s contract with the broadcaster, effectively spelling the end for the company which celebrates its 50th birthday this year.

Reports over the weekend suggest that Allen would allow ITN to retain its contract if the news company were bought by ITV, which currently owns 40% of the business. A complete buy-out would involve ITV successfully purchasing the remaining 60% of ITN, which is split equally between Daily Mail & General Trust, Reuters and United Business Media, each holding 20% of the company.

Allen has stated that, unless ITV is allowed to buy the business before the end of its current contract, the broadcaster will undertake to create its own news content in house, a move which would cost ITN its largest customer and leave it in serious financial difficulty.

ITV’s contract with ITN is due to expire in 2008. In addition to its work with ITV the company produces Channel 4 news, as well as more than 250 commercial radio news programmes through its subsidiary firm, Independent Radio News.

Last year saw the company lose out on the contract to provide continued news services to Five, being beaten by satellite giant, Sky News. The contract was believed to have been worth around £6 million (see Sky Scoops Five News Contract From ITN).

Charles Allen’s comments were made in ITN journalist Richard Lindley’s new book, And Finally… The News from ITN, and publicised in the Observer. The comments come at a time of increased speculation surrounding ITV, with several rumours surfacing, including those of a possible imminent buy-out by venture capitalist groups Apax and KKR (see Hollick Considering ITV Takeover Bid).

Speculation was further fuelled by rumours last week that former BBC director general Greg Dyke had become involved with a possible bid, working with Lord Hollick and former managing director of the Telegraph Group, Stephen Grabiner (see Greg Dyke Implicated In ITV Bid Speculation).

ITN: 020 7430 4700 www.itn.co.uk ITV: 020 7843 8000 www.itv.com

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