ITV Ponders Bid for Scottish Media Group

31 October 2006

LONDON: The UK's biggest commercial broadcaster, ITV, is mulling a bid for ailing Scottish Media Group, which owns the commercial television franchises for regions north of the border.

SMG has been at odds with some of its largest shareholders since it issued a profits warning last week [WARC News: 24-Oct-06].

ITV, itself a stockholder, has a near-17% stake in SMG and believes, according to one anonymous insider: "We are the logical owners ultimately, but that doesn't mean it has to be now."

ITV too is under pressure, due to diminishing ad revenues at its flagship ITV1 channel and will have to consider whether shareholders want to increase their exposure to the precarious TV ad market.

Data sourced from Financial Times online; additional content by WARC staff