ITV shares soared on Friday after the group confirmed it had been approached by Sky with an offer to buy its media and entertainment arm for an enterprise value of £1.6bn.
The bid comes shortly after Liberty Global sold half of its stake in ITV, effectively clearing the way for a bid for all or part of ITV.
ITV shares soared 18% in early trade on Friday. Although shares spiked higher, ITV is only trading at levels seen in early October.
Nick Purves, Fund Manager at Temple Bar Investment Trust, previously argued on a UK Investor Magazine virtual presentation that ITV’s sum of its parts is worth far more than the value attributed to the group as a whole.
It appears that major players in the industry share this view, with Sky the first to make a move for the broadcasting arm. Talkover speculation has swirled around ITV for years, and it wouldn’t be surprising if other parties throw their hat in the ring.
The reported £1.6bn enterprise value seems a little low, given that the M&E business recorded £250m EBITA in 2024.
One would expect this to rumble on.