GMTV Shareholders To Review Stakes

The Guardian Media Group (GMG) and the Scottish Media Group (SMG) are to review their ownership stakes in breakfast television station GMTV. The two parties are understood to have approached Schroders, the investment bank, in the hope of soliciting offers for the stakes.

SMG owns 20% of GMTV and Guardian Media holds a 15% stake. The combined 35% stake, which may be sold by Schroders, has been valued at around £90 million.

Until the Independent Television Commission reassessed its licence fee tariff in November last year, GMTV had been making a loss of around £15 million per year (see GMTV Sees Cut In Treasury Payment). The new, reduced licence payment, however, has brought the station into the black for the first time. It was expected that both Guardian Media and Scottish Media would reassess their shareholdings in GMTV after the details of the new licence payments were known.

Whilst a spokesperson for SMG would not comment on the speculation, the Guardian Media Group issued the following statement:

“Following speculation in today’s press, the Guardian Media Group confirms that it is currently reviewing its options in relation to the 15% shareholding in GMTV. No decision has yet been taken concerning the future of this shareholding, and the Guardian Media Group is wholly supportive of the company and its management.”

Guardian Media Group: 0171 239 9696 Scottish Media Group: 0141 300 3000