ITV Studios Will Not Need A “Transformational Acquisition” After Splitting With ITV Network, Claim Bosses

ITV Studios will be able to stand on its own two feet when it becomes an independent studio, bosses at ITV said today.

Following the news Comcast-owned Sky has struck a £1.6B (£2.1B) agreement to buy the ITV networks and streaming business, Love Island and Line of Duty producer ITV Studios will be faced with a non-aligned future for the first time.

Carolyn McCall was quick to speak up its indie production prospects and global scale on a call with analysts and journalists this morning amid persistent rumors over its future. With rivals such as Banijay and All3Media merging and the tech and streaming giants getting larger, market chatter has persisted that ITV Studios would need to merge with a rival such as Fremantle or could become another takeover target to gain scale.

“We are confident that ITV Studios will continue to succeed,” said ITV CEO Carolyn McCall. “It has been a really success story in the past eight years. It has grown about 45% and it has the best shows in every genre.”

Chris Kennedy, ITV’s Chief Operating Officer and Chief Finance Officer, added: “ITV Studios already has the scale to compete in the global market. It is one of the largest independent producers in the world, and more than half the revenue comes from outside the UK.”

He pointed to “a very successful strategy of bolt-on acquisitions” and claimed the company would have “sufficient cash to continue” in that vein. “We don’t see the need for a transformational acquisition of anything like this scale,” he added.

This was despite the Sky deal including a clause that will see £950M returned to ITV shareholders, in theory reducing the amount of money the Studios business might take to bank.

McCall rejected the notion and pointed to the fact the Sky deal includes ITV Studios acquiring The Great British Bake Off maker Love Productions for £200M as evidence it would be a buyer, not a seller, in future.

ITV Studios Managing Director Julian Bellamy said the company was already at global scale and could compete in the markets such as the UK, U.S. and Europe with its current set-up.

“Let’s not forget we are one of the biggest global studio groups in the world,” he added. “We have over 60 companies in 30 different markets and 7,000 hours content every year. We’re the second-biggest format distributor in the world. We have these big competitive advantages: A formidable talent base, and an IP library that is one of the best and biggest in the business, and predominantly they are bankers – extremely valuable assets in the market.

The independent ITV Studios will be listed on the London Stock Exchange once it demerges with its network parent. McCall said today she expected the agreement to take up to 18 months to close, with various British regulatory bodies and government agencies likely to consider the impacts of the deal.

McCall and Sky CEO Dana Strong both used the phrase “streaming champion” to describe what the merged business would look when questioned today.