ITV shares up on Leftfield purchase

<p>Stocks in the television company rose this morning.</p>

The share price of television company ITV is up this morning (May 7th) after the firm revealed it has purchased a controlling stake in Leftfield Entertainment Group.

ITV stated that the deal for the company means it is now the largest unscripted independent producer in the US and investors responded positively to the news being released.

The company has already gained regulatory approval and ITV stated that the deal "will be earnings enhancing from day one" after an agreement was reached with the Leftfield founder and chief executive officer Brent Montgomery.

Commenting on the deal, Mr Montgomery stated that it is an exciting time for everyone involved with Leftfield. He said: "Our agreement with ITV marks a major milestone in the company's evolution and I am looking forward to working with them for the next five years and beyond."

In a statement, ITV revealed that Mr Montgomery will remain chief executive of Leftfield Entertainment Group under ITV's new ownership.   

International focus

ITV is pushing hard with plans to build a strong international content business, focusing particularly hard on the US market at the present time. ITV Studios now has a "significant presence" on both the east and west coasts of the US and the company stated that the Leftfield deal "strengthens and complements our existing creative capability".

Adam Crozier, chief executive at ITV, added that Leftfield has been able to grow rapidly from producing a single pilot to becoming one of the biggest independent TV firms in the US.

He said: "The team has combined creativity with strong production expertise, with over 70 per cent of the business coming from returning series and a pipeline of new ideas coming through in 2014 and into 2015 that is really encouraging."

Following this morning's announcement, the share price of ITV rose on the London Stock Exchange. By 09:31 BST, stocks in the firm were up by more than one per cent compared to the start of the trading session, though these gains were not as large as earlier in the day. At 11:35 BST, the increase was 1.08 per cent.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

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.