RedBird IMI, the Abu Dhabi-backed investment firm that faced obstacles in its bid to acquire The Telegraph, is reportedly in early-stage discussions to merge its production company, All3Media, with ITV Studios. This potential merger could create a media powerhouse valued at nearly £3 billion, signaling a strategic shift towards entertainment content.
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All3Media, acquired by RedBird IMI for £1.2 billion in 2024, is the production force behind popular shows like “The Traitors.” Combining it with ITV Studios, known for hits such as “I’m a Celebrity… Get Me Out of Here!” and “Love Island,” would consolidate significant production capabilities under one roof.
While talks are preliminary and may not result in a transaction, the move suggests a potential pivot for RedBird IMI away from politically sensitive news publishing. The firm’s attempted takeover of The Telegraph was blocked by the UK government last year due to concerns about press freedom.
ITV’s Strategic Considerations
For ITV, this potential merger aligns with CEO Dame Carolyn McCall’s ongoing efforts to enhance shareholder value. ITV’s stock price has languished near 13-year lows due to investor anxieties about the decline of traditional broadcasting. Previously, in 2023, ITV explored acquiring All3Media but withdrew, paving the way for RedBird IMI’s acquisition.
The renewed interest in a potential merger comes as market speculation about RedBird IMI and CVC Capital Partners considering bids for ITV resurfaced late last year.
IMI Restructures Amidst Market Shifts
Coinciding with the merger talks, IMI, the Abu Dhabi backer of RedBird IMI, announced significant cutbacks at its newspaper, The National, including its London bureau. These reductions reportedly extend to other IMI news outlets like Sky News Arabia and CNN Business Arabic.
An IMI spokesperson stated that the restructuring is a response to a “rapidly changing market” and aims to “direct resources and investment towards areas of growth and future potential.” IMI emphasized its commitment to strengthening content creation and investing in new media technologies.
From News to Entertainment: A Strategic Shift?
The concurrent developments suggest a strategic move away from potentially controversial news publishing towards the more financially attractive entertainment sector. RedBird IMI is currently seeking to sell The Telegraph and recoup its £500 million investment, but the process has reportedly encountered challenges due to the high asking price. The newspaper remains in a state of uncertainty 20 months after the initial acquisition attempt.
Potential Powerhouse in British Television Production
A merger between All3Media and ITV Studios would unite two of Britain’s largest production groups. All3Media’s portfolio includes acclaimed shows like “Fleabag,” “Gogglebox,” and “Call the Midwife.” ITV Studios, besides its own network hits, produces programs for other broadcasters and streaming platforms, including Disney+ and the BBC.
The combined entity could be valued at approximately £2.8 billion, based on a valuation multiple applied to each company’s profits. This consolidation comes as producers grapple with increasing competition from US streaming giants, rising costs, and shrinking commissioning budgets. The BBC recently warned that numerous programs are in “production limbo” due to these industry challenges.
Both RedBird IMI and ITV declined to comment on the merger discussions.
