Proactive Investors - ITV’s decision to no longer explore a deal for Gogglebox producer All3Media “makes sense” according to analysts at Citigroup (NYSE:C).
Analysts at the bank acknowledged that All3Media is an unusual asset in size and would push ITV (LON:ITV) down its path of becoming less reliant on linear TV advertising.
However, the bank believes “it is not sufficiently unique that it would be worth stretching ITV’s balance sheet at a time of peak investment in the streaming business and peak uncertainty on advertising outlook”.
“This doesn’t mean that further M&A in content production at a later date might not make sense, but overall we think it is sensible for ITV to keep its powder dry for now,” said the broker.