“The Board believes that whereas there is obvious appeal to NTL in gaining control of ITV’s substantial and successful business, from ITV’s perspective there is little, if any, strategic logic for ITV to combine with NTL,”
So says the statement from ITV that would seem to bring, for the time being at least, the notion of an NTL merger with the company to a close.
It’s all been very bizarre, though, and ITV are quite right to reject the proposed merger. Whatever the problems currently being experienced by ITV, the company, or at least the channel, is still a national treasure, if a somewhat faded one in the current climate. By that merit alone, ITV should be given the space to sort its issues out and emerge as a major player in broadcasting once again.
As its stands, with the Chief Exec’s chair yet be filled, ITV is still in a vulnerable position, and that’s a situation that needs to change. Soon. The company needs a big brother figure, somebody that will bring stability and reassurance at the top, but also with the power to send a warning to the circling sharks to back off.
With that position still vacant, ITV feels like a little kid playing in the sandpit, victim to the bullying whims of the bigger kids who have the cash to flash, with no one to run to when its nose gets bloodied.
Still, it’s been quite amusing to see a couple of those bigger kids getting into their own scrap, which might have saved ITV this time from being swallowed up. BSkyB’s purchase of 17.9 percent of ITV’s shares has fear written all over it. An ITV/NTL merger could be a serious threat to Rupert Murdoch’s position, and Ofcom is acting correctly in investigating whether Sky’s stake in ITV alters any of the broadcasting licenses the company holds (which makes a nice change). What makes this situation even more interesting is NTL majority shareholder Richard Branson pointing the finger and stamping his feet over Sky pretty much scuppering the NTL merger with ITV. Sometimes life just isn’t fair is it, Richard? This is a bitch fight that could run and run.
All fair play to ITV, though. For once, the company has come out a winner, showing strength in rejecting the bid on the basis that NTL undervalued the company. Quite right too.
