Not very well reported this week, but there has been a boardroom coup at UTV - John McGuicken, who has been a director for 40 years and chairman since 1990, was ousted along with Shane Reihill (chairman of large shareholder Trinity Venture Capital) and an independent director.
Strong murmerings now that this will participate a bid for UTV, whether this will come from ITV plc or elsewhere I don't know...
Interesting. I assume the ousted figure was instrumental in keeping UTV independent?
It's worth remembering that UTV Media plc. has lots of assets that wouldn't fit naturally within ITV plc. - an ISP and an art collection business are just two I can think of off the top of my head. Not unthinkable that UTV Media plc. would sell the ITV franchise and retain those assets though.
So one way or another 'ITV Ulster/Northern Ireland' may yet happen?
It could yet happen, though in my mind TVC is now more likely to make a bid for UTV than ITV plc is. ITV plc would have little to gain now other than advertising sales in Northern Ireland and a whole new headache with TV3 in that it would now be in direct competition for advertising in the Irish market against it. It'd also be left with the problem of what to do with all the non-TV assets that UTV owns. I just opened UTV's corporate site and was greeted with a picture of Richard Keys and Andy Grey - its probably more accurate now to call UTV a radio company with a side-business in TV than the other way around.
Now it could happen that UTV could decide the TV business is no longer core and decide to jettison it. However because of the company's history, I think it would be reluctant to exit what was its original business and its traditional core. You could say if the right offer was made it might, but ITV's probably unwilling to pay over the odds at the bottom of the market.
There are a couple of potential savings for ITV - however much the Macmillan Media contract for Daybreak is for starters. I would have thought ITV would be willing to pay a fair price - the figure paid out for Disney's 25% stake in GMTV wasn't insignificant, neither was the Channel Television buyout.
UTV would be attractive for ITV plc, but the radio station, Talksport, would be the main prize. By owning talksport, ITV could cross promote, and also, crucially, could pool reporters, presenters, and commentators. Indeed, I believe, as a non footie fan, that Talksport does have some Premier league rights. If so, it could give ITV commentators, such as Clyve Tyldseley extra work.
In addition, the news service could be provided by ITV/ITN, thus meaning better use of resources again.
UTV would be attractive for ITV plc, but the radio station, Talksport, would be the main prize. By owning talksport, ITV could cross promote, and also, crucially, could pool reporters, presenters, and commentators. Indeed, I believe, as a non footie fan, that Talksport does have some Premier league rights. If so, it could give ITV commentators, such as Clyve Tyldseley extra work.
In addition, the news service could be provided by ITV/ITN, thus meaning better use of resources again.
Would ITV flog the local radio stations UTV own?
(Didn't the ones Border used to own get flogged to one of the big groups?)
IIRC, Border was purchased by the Capital group in 2000, who proceeded to sell the TV holdings to Granada and keep their newly-acquired radio stations in their portfolio - which is now scattered among Real Radio and Bauer Radio among others.
Given how UTV's radio sidelines are among the profitable parts of UTV Media plc (and, along with UTV Internet, helping keep the TV side buoyant, hence all those sodding U105/Talksport/FM104 ads TV audiences must put up with), any bids for the company would most likely be to swoop for these than the TV arm.
Two strong determining factors in a potential UTV sale are:
a) if a buyer wants a quick entry to the RoI radio market with stations in highly-populated urban areas
b) the buyer doesn't already have vested interest in other NI media businesses; e.g. Bauer may not wish to make a bid, as they currently own Downtown and Cool FM
An ITV buyout of UTV, while certainly an idea not to rule out, will have to be a measured choice; they've had their fingers burnt in the recent past with their acquisitions (Friends Reunited, anyone?) and there'll be a strong need to convince shareholders and financial observers it's a valuable investment.
Whoever could potentially take over the hallions at Havoc House, there's one thing guaranteed: they won't give up without a fight to retain their independence, never mind their own identity if it's part of ITV plc.
I don't think the seemingly aimless ITV plc of 2005 which was desperately trying to increase profitability is comparable to the relatively well focussed ITV of today. It seemed to me back then that ITV would try its hand at anything without regard for how it would fit within ITV, the brand and the organisation. This is of course from around the same time that ITV dived head first into the grubby waters of "interactive programming" and that certainly didn't serve ITV well in the long-term, either. Easy to forget but this was a period of great uncertainty with the whole NTL will-they-wont-they situation which was stopped by Sky taking a share holding which only served to further threaten the business.
They've come a long way since then and it definitely seems that lessons have been learned and acquisitions since have been sensible "gap filling" affairs - the remaining 25% of GMTV (which as well as breakfast TV meant they could bring CITV back in-house) and the Channel franchise being the two I can bring to mind.
Yes, they got their fingers burned with Friends Reunited but they did well to get the price they did at the time they did (today it's worth a fifth of what DC Thomson paid for it 3 years ago).
With regards to UTV - I can only really see the NI Franchise ending up with ITV plc. - either:
a) ITV will bid for the entirety of UTV Media plc.
b) ITV will bid for the entirety of UTV Media plc, run the non-ITV assets at arms length and look for buyers
c) ITV will be part of a consortium to purchase UTV Media plc, along with an ISP (TalkTalk?) and a radio company (Bauer? Orion?)
d) A radio company will purchase UTV Media and immediately sell the ITV franchise to ITV plc.
e) UTV Media consolidates on its radio business and sells off the ITV operation.
I can't see why any radio group would be interested in running the last remaining independent ITV franchise. The only other possible fit I'd consider is SMG.
Either way there's no getting away from the fact the franchise is a sitting duck and makes no sense other than as a sacred cow.
IIRC, Border was purchased by the Capital group in 2000, who proceeded to sell the TV holdings to Granada and keep their newly-acquired radio stations in their portfolio - which is now scattered among Real Radio and Bauer Radio among others.
Indeed they did, Border like UTV expanded into radio and ended up with it being a bigger part of the company than TV
With the impending arrival into Northern Ireland of legal RTE1, RTE2 and TG4 coverage on DTT, wouldn't this make UTV less attractive to ITV as a commercial broadcaster, noting the extension of choice to viewers (and advertisers) in the province?