Shares in ITV (ITV) were down marginally in morning trading as the broadcaster said it was considering buying independent TV and film production company All3Media.

Best known for popular TV shows like Traitors, Midsomer Murders and Fleabag, All3Media is jointly owned by Warner Brothers Discovery (WBD:NASDAQ) and Liberty Global (LBTY:NASDAQ).

Analysts valued the independent production company at around £1 billion earlier in the year.

WHAT WOULD THIS DEAL MEAN FOR ITV?

According to media reports, ITV wants to combine All3Media with its ITV Studios unit which makes the hugely successful reality TV show Love Island.

Liberty Global already has a 9.88% stake in ITV and is a long-term stakeholder.

If the acquisition of All3Media were to go ahead, media reports say that Liberty Global would retain ‘a stake in the merged entity’.

The possible deal could also help Warner Brothers pay down some of its debt pile of $49 billion if the company sells its stake in All3Media to ITV.

WHO IS ALL3MEDIA?

All3Media was founded in 2003 and acquired in 2014 by Liberty Global and Warner Brothers Discovery for £550 million. It now owns more than 50 production and distribution companies.

The company reported a pre-tax profit of £18.1 million for the year ending 31 December 2021 compared to a loss of £29.4 million in the same period a year earlier, according to accounts filed with Companies House.

WHAT'S HAPPENED TO ITV SHARES?

ITV shares have fallen nearly 10% year to date and are currently at 69p. In May, the free-to-air broadcaster issued cautious guidance for the second quarter of 2023.

For the first quarter of the year, it reported a 7% fall in advertising revenue to £776 million for the three months to 31 March 2023 compared to £834 million in the same period last year.

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