ITV agrees deal for Dutch TV company

<p>ITV has announced a £355 million deal for Talpa Media.</p>

ITV is set to expand its service after announcing a deal to acquire Dutch TV production company Talpa Media.

The agreement, valued at around £355 million, will allow ITV to increase its presence in TV production to reduce its reliance on advertising, a strategy that can be subject to a high degree of volatility. Officials explained that the deal is expected to completed by the second quarter of the year.

Talpa Media has a main focus on developing new TV formats which can generate big audiences. Founded by Big Brother creator John de Mol, the company has brought shows likes The Voice, I Love My Country and Dating In The Dark to mainstream television. The former has been a huge hit across the world and is currently broadcast in 180 nations.

In the UK, the talent show is televised on the BBC with the current judges including Tom Jones, Rita Ora, and the Kaiser Chiefs' Ricky Wilson. Despite the lack of commercial success from winners such as Leanne Mitchell, Andrea Begley and Jermain Jackman, the show remains a major draw for audiences retaining a primetime Saturday evening slot.

Adam Crozier, chief executive of ITV, said: "Great content is at the heart of ITV’s growth strategy and the acquisition of Talpa builds on the success of our international content business and is absolutely in line with our desire to create and own formats that travel.  

"Mr de Mol and his team have an incredible track record of doing that consistently over many years and I’m delighted to welcome them to the ITV family."

Surging profits

ITV revealed earlier in the month that programmes such as Downton Abbey and Doc Martin had allowed it to generate pre-tax profits of 39 per cent for the year to December 31st. This meant, including exceptional items, ITV had made a £605 million profit during the past 12 months.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.