Carlton and Granada are poised to take the plunge and propose a single ITV sales house to the Office of Fair Trading (OFT), according to reports today.
It is understood that the submission will arrive at the OFT at the end of the month. However, it is widely expected that any merger will be referred to the Competition Commission.
The Carlton-Granada amalgamation has been widely opposed by advertising bodies and big brand advertisers alike, who have argued that the combined weight of the two groups will drive up prices (see Rival Commercial Broadcasters Challenge ITV Merger).
A variety of theories have been floated over the ways in which Carlton and Granada could sidestep current regulations. City analysts have suggested that a smaller existing sales body could be allowed to purchase their sales houses. There has also been speculation that Martin Bowley, Carlton Sales’ chief executive, is planning a management buy-out.
However, it is unlikely that moves towards a single sales house will be plain sailing, regardless of ITV’s attempts to re-package the idea. Speaking at last month’s annual Media Question Time event, ISBA’s director of media and advertising affairs, Bob Wootton, said the sales issue would be the “deal breaker” for Carlton and Granada.
