Digital
Transformation
Festival


16 March - 24 April 2020

Our online festival is underway with a packed programme of interviews and panels. Featuring talks from the industry’s biggest brands and most innovative individuals, this event explores what digital transformation really means for marketing.

Coming Up
10 Apr 10:00 BST / 05:00 EST

Talk to me: voice technology, are we there yet?

FEATURING
Hamish McPharlin
Head of Insight at BBC Global News
Sophie Hind
Managing Director at Voiceworks
Imogen Watson
Journalist at The Drum

ITV takeover rumours circulate as Brexit result wipes £2.5bn off broadcaster's stock market value

ITV's stock market value has declined by almost £2.5bn since Friday / ITV

ITV's stock market value has declined by almost £2.5bn since the UK voted to leave the EU, provoking speculation that the network could become a takeover target.

ITV is highly dependent on advertising for a large slice of its revenues and investors are nervous about the repercussions a Brexit could have on marketing budgets, which is driving the broadcaster's share value down.

The group's share price fell by more than 20 per cent on Friday, then jittery investors drove its price down by more than five per cent in early trading on Monday. At the time of writing, ITV's share price had fallen to 165p, down from a pre-Brexit figure of 220p.

City analysts are now wondering whether the broadcaster's stock market decline, coupled with the pound's fall in value, could court takeover bids from overseas media firms.

"This increases the chance of a bid by one one of the major US media companies where there is a historical and present interest in the UK market," said Ian Whittaker, an analyst at Liberum told the Guardian.

"Not only from the established media giants, but also from new media/tech companies (for example, we believe that several of the US internet giants explored a bid for the English Premier League rights in the last bidding round)."

Both John Malone's Liberty Global, which owns Virgin Media and NBC-owner Comcast, are rumoured to have expressed interesting in scooping up ITV previously, with the former being the brand's largest shareholder with a 9.9 per cent stake in the business.

Back in May, ITV warned that uncertainty over the referendum had led to "flat" advertising sales.

Join us, it's free.

Become a member to get access to:

  • Exclusive Content
  • Daily and specialised newsletters
  • Research and analysis

Join us, it’s free.

Want to read this article and others just like it? All you need to do is become a member of The Drum. Basic membership is quick, free and you will be able to receive daily news updates.