Publishing and media group United Business Media (UBM) has settled its on-going dispute with commercial broadcaster ITV, created by the merger of Granada and Carlton Communications last year, over Granada’s £1.75 billion acquisition of UBM’s ITV franchises in 2000.
The settlement involved a £32 million payment from ITV to UBM and, although neither company has commented on the dispute, it is understood to relate to the treatment of tax losses following the deal in 2000, according to a report in the
Financial Times.
The payment was revealed in a stock exchange announcement made by UBM on Monday, stating: “Additional UBM information update in relation to disposals in 2000. United received a settlement payment of £32 million from Granada in relation to outstanding items following the 2000 disposals.”
The agreement has drawn a line under UBM’s disposal of its ITV franchises, which it acquired after the Competition Commission blocked a merger between Carlton Communications and the then-United News and Media.
ITV controls more than 50% of the TV advertising market and investors have turned their attention to whether or not UBM will sell its remaining TV interests, including a 35% stake in Five and a 20% holding in the ITN news supplier and archiving business.
The settlement came as Lord Hollick, chief executive of UBM, prepares to step down after 30 years with the company. He will be succeeded by David Levin, chief executive of Symbian, who will take over after the annual company meeting in April (see United Business Media Announces New Chief Executive).
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