TVS Takeover By Family Entertainment

US cable television company, International Family Entertainment, has offered a sum of £38.2m to take over TVS Entertainment, the ITV company which lost its licence last year to Meridian TV.

IFE is one of the largest television companies of its kind in the US, claiming to have over 56m subscribers. Its chief asset is The Family Channel which is dedicated to comedy and family gameshows. The company is now attempting to expand into the UK television market and will use the acquisition to precipitate the move.

TVS has been planning various moves to re-establish itself in January, when Meridian takes over the south of England licence. Just weeks ago the company showed interest 111 buying a 51% stake in independent production company, Zenith, with a view to investing in similar stakes throughout the UK. However, due to financial restrictions TVS had to put the deal on hold.

The takeover is not being viewed as a very good deal for shareholders in TVS, with former chief executive and main shareholder, James Gatward claiming that the company is worth much more than the offered amount. IFE will officially take over transmission on January 1.