GMTV Purchase May Be Judged By Competition Commission
The Office of Fair Trading has issued a statement to the London Stock Exchange stating that ITV’s proposed acquisition of Scottish Media Group’s 25% stake in GMTV may be referred to the Competition Commission for investigation.
The statement invites feedback about any competition or public interest issues to be sent to the OFT by 29 July 2004.
If ITV are successful in the bid worth £31 million, they will hold a 75% share of the in the UK’s largest breakfast show. Completion of the deal would oblige ITV to make an offer at the same price to the Walt Disney Company for its 25% shareholding in GMTV.
The proposed buy-out is part of a wide-ranging deal that also saw ITV take-over the sale of SMG’s national television airtime on both its Scottish Television and Grampian Television licences.
SMG claims to have made £2.9 million in profit from its stake in GMTV last year. However, media agency estimates, compiled by MediaTel Group, show the breakfast channel saw revenue dip by 4.8% year on year during March to £5 million (see NewsLine).
ITV: 020 7843 8000 www.itv.com SMG: 0141 300 3000 www.smgplc.plc.uk
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