Guardian Media Group has announced that it has sold its shareholding in breakfast time broadcaster, GMTV. The 15% stake is to be divided equally among three other shareholders in the station, Scottish Media Group (SMG), Carlton Communications and Granada; each will pay £5.6 million in cash and £500,000 in loan notes for the 5% share.
As a result of the sale, each of the above shareholders will now own a 25% stake in the breakfast broadcaster. Walt Disney, the US media group, already owns the remaining 25% stake.
There has been speculation about the sale for almost a year when both Scottish Media Group and Guardian Media Group announced a decision to review their ownership stakes in GMTV (see GMTV Shareholders To Review Stakes). Later in the year, Scottish Media Group confirmed plans to make a bid offer for the group and tabled its proposals with the other shareholders (see Scottish Media Poised To Bid For GMTV). In the final outcome, however, the other three shareholders decided to exercise their rights to acquire the shares.
Chief executive of SMG, Andrew Flanagan, commented on his group’s increased stake: “GMTV is both a household name and a successful national broadcaster whose financial prospects have improved significantly since its recent licence renewal [see GMTV Sees Cut In Treasury Payment]. We look forward to working even more closely with the team at GMTV, capitalising on the opportunities which exist for both organisations at this exciting time in the development of broadcast television. ”
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