ITV set for victory in race to buy Friends Reunited

by Staff, Brand Republic 05-Dec-05, 08:30

LONDON - ITV is set to clinch a £120m deal this week to buy the phenomenally successful internet business Friends Reunited, with an additional £50m paid to the management team if performance targets are hit.

ITV was tipped as the leader in the race for the website, which brings old school, university and work colleagues together, last month.

The broadcaster is believed to have seen off competition from rival bidders BT and the Daily Mail & General Trust.

The deal will see the site's management team, led by Michael Murphy, tied into the business as part of the deal to acquire the site, which was launched in 2000 by husband and wife team Steve and Julie Pankhurst.

ITV will be taking control of a business that has considerably grown since its launch, with over half of its revenues now not coming from the original Friends Reunited website.

Murphy and the management team control about 30% of the firm, with the Pankhursts and co-founder Jason Porter owning 60%.

Last month Jeff Henry, chief executive of ITV's newly formed consumer division, said: "ITV growth will also come from acquisitions and you can expect announcements imminently."

ITV will also use the business to tie in with the development of its planned local TV operation.

Friends Reunited, which generated £4.6m last year, was put up for sale in the summer.

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