RTL joins forces with equity firms for ITV bid

by Staff, Brand Republic 17-Nov-06, 09:00

LONDON - Having apparently ruled out a bid, RTL is now working with private equity firms on making an offer for ITV in excess £5bn to rival that of cable giant NTL, which last week opened talks with the broadcaster.

RTL, which is Europe's largest broadcaster, is reported by the Financial Times this morning to be working with private equity companies that have put up most of the funds needed for the bid.

Such a strategy would allow RTL to acquire a minority without calling on its 90% shareholder Bertelsmann to fund the deal.

Reports of a bid by RTL follows denials from its CEO Gerhard Zeiler earlier this week of talks between the German and British TV groups, adding that such talk was pure "speculation".

If RTL does bid for ITV it will likely have to sell its UK terrestrial channel Five for which it has just launched two digital channels Five Life and Five US.

Five has been hit by falling viewing share and a late entrance to the digital market where it has been losing its audience. It recently parted company with its director of programming Dan Chambers.

If RTL owned a combined ITV/Five it would control more than 50% of the UK's TV advertising market, 60% of the commercial TV market, and 30% of TV viewing share.

Yesterday, Michael Jackson, the former Channel 4 chief executive, was named as the frontrunner for the ITV's chief executive role. Jackson is currently in the US where he is president of programming at Barry Diller's InterActiveCorp.

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