Since former Football Association and Royal Mail boss Adam Crozier took over as chief executive in 2010, ITV has embarked on an ambitious acquisition spree.
The company has trained its sights on TV production companies capable of producing big hits with international appeal to boost its ITV Studios division.
It hopes that by selling popular shows around the world, it can offset the decline in advertising revenue affecting broadcasters.
Most of the deals have involved an upfront cash payment, with add-ons depending on the financial performance of the acquired company after the deal.
Talpa Media
ITV agreed last year to pay an initial £355m for Netherlands-based Talpa, set up by Big Brother creator John de Mol. Talpa’s hits including The Voice, a singing talent show, and Utopia, a thriller that aired on Channel 4.
Mammoth Screen
Last year was a busy one for ITV, which also snapped up the 75% of UK producer Mammoth Screen that it did not already own. The deal saw the broadcasting group get its hands on the company behind Poldark, which has proved a huge ratings hit for the BBC. The production company is making the forthcoming eight-part dramatisation of the reign of Queen Victoria for ITV.
Leftfield Entertainment
The British broadcaster became the largest independent producer of unscripted TV in the US in 2014, when it paid an initial $360m for 80% of Leftfield Entertainment, with further payments dependent on performance. The reality TV producer is responsible for programmes such as Real Housewives of New Jersey and Pawn Stars.
TwoFour
LDC, the private equity arm of Lloyds Banking Group, sold 75% of TwoFour to ITV in 2015 for £55m, with an option to acquire the remaining 25% from 2017 for a price adjusted to reflect its profits. TwoFour produced The Jump, a snow sports series featuring celebrity talent, and documentaries The Hotel Inspector and Educating Yorkshire.
Big Talk
ITV agreed to pay £12.5m for Big Talk in 2013 in a deal that could rise to £30m depending on earnings targets. Most of the production houses that ITV has acquired have been TV specialists but Big Talk has also made films starring the comedian and part owner, Simon Pegg. These included hits such as Shaun of the Dead and Hot Fuzz. The company also made TV comedies Rev, Friday Night Dinner and the new series of comedy-drama Cold Feet.
Gurney Productions
In 2012, ITV got its hands on the popular Duck Dynasty reality TV show with the acquisition of Gurney Productions. ITV agreed to pay $40m for 61.5% with an option to buy the rest of the shares three years later. Gurney’s portfolio also includes Auction Hunters and American Digger.
