US media executives are eyeing takeover and merger opportunities in the UK, following the relaxation in ownership restrictions proposed by the Draft Communications Bill, according to report in this morning’s Financial Times.
The paper notes that Bob Wright, chief executive of NBC, was in London last week on the lookout for possible deals for his media group. Mel Karmazin, Viacom’s chief operating officer, is also cited as showing interest in acquiring UK media assets.
The Communications Bill proposed removing the restrictions which prevent non-European Union companies from buying UK television and radio businesses. If the Bill is introduced in this format, it is expected that a wave of mergers, takeovers and consolidation will begin as a result. The share prices of UK media groups – particularly ITV groups Carlton Communications and Granada – rose in anticipation of this when the Draft Bill was announced.
