Television Takeovers – Predictions

The weekend’s press reports of Friday’s Broadcasting Bill have led to a wide range of predictions regarding takeovers in the opened-up television market; the rule that only two television licences can be held by one company has gone to be replaced by a cap of 15% of audience share.

The favourite takeover targets are Yorkshire Tyne Tees Television, Scottish, Ulster and HTV. Granada or MAI are expected to be interested in YTTV; and Carlton and MAI are expected to be interested in HTV, with the bids being well over £400 million. Carlton, which already has a total share of audience of 9.4% could own Yorkshire but would have to get rid of Tyne Tees, as this would put it over the 15% total. HTV and STV, alternatively could well join together to prevent any hostile takeover bids.

The new Bill also means television companies could takeover national newspapers and vice versa. Newspaper groups who can take over ITV licences exlude Mirror Group and News International, because they have more than 20% share of the national newspaper market, but the Daily Mail and General Trust and Pearson may well be interested. United News and Media, troubled publishers of the Express titles are thought to be at risk from a takeover bid by Carlton.

Share of Total National Newspaper Circulation

Source: Based on ABCs Jan-Jun adjusted to take account of Sunday newspapers by Department of National Heritage.

Share of Total Television Audience by Channel

Source: ITC/BARB/DNH