U.K. TV giant ITV CEO Carolyn McCall discussed the opportunities coming her team’s way during the soccer World Cup. At an industry crowd in London on Thursday, she also mentioned that ITV remains “very much actively engaged in discussions” with Sky about a potential mega-deal.
Sky has been in discussions with U.K. TV giant ITV regarding a possible acquisition of ITV’s media & entertainment (M&E) business. “We will update the market in due course,” ITV had said last month after first disclosing the talks in November. The unit includes ITV’s commercial free-to-air TV channels in the U.K., as well as its ITVX streaming platform. After a potential deal, ITV Studios would continue as a standalone company.
Asked about this potential shedding of the M&E arm at the Enders TMT Leaders Live conference in the British capital, McCall offered: “Shedding is a bad word,” signaling that she would use a different phrase for the strategy behind the possible deal. But she also highlighted that she couldn’t discuss the possible merger as the talks are ongoing.
Meanwhile, the upcoming FIFA World Cup is a key opportunity for ITV. McCall mentioned a fan app to engage differently and in new ways with audiences in addition to streaming and traditional TV broadcasts. “Of course, we are going to have millions coming in” and sampling what else ITV has to offer in terms of programming, the CEO concluded.
The ITV CEO also lauded both ITV Studios and the M&E unit as doing well. “We are hugely cash-generative,” thanks particularly to the M&E business, she said. And she highlighted: “We have optimized everything we do” at M&E, to shore up areas, such as linear TV, hit by disruption. She also signaled that ITV Studios should have a higher stock multiple based on comparables.
Earlier in the conference day, Comcast’s European TV and telecom powerhouse Sky was in the spotlight, with group CEO Dana Strong taking the Enders stage. She was not asked about the potential acquisition of a part of ITV.
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