A group of investors backed by Abu Dhabi has reached an agreement to purchase the Telegraph and is currently in the final stages of acquiring another valuable UK media asset. This asset is All3Media, a TV production company responsible for popular shows such as Call the Midwife, Squid Game: The Challenge, Gogglebox, and Midsomer Murders.
RedBird IMI, a joint-venture between the US company RedBird Capital and International Media Investments (IMI) of Abu Dhabi, the investment vehicle for the UAE vice-president, Sheikh Mansour bin Zayed al-Nahyan, is understood to be in advanced negotiations to buy the UK’s largest independent TV production group.
Earlier this year, All3Media, based in the UK but owned by both Warner Bros Discovery and Liberty Global, was made available for purchase.
In 2014, American media companies bought a group that includes various production company subsidiaries responsible for popular UK shows like The Only Way is Essex, The Traitors, Geordie Shore, Derren Brown, Peep Show, and Gordon Ramsay’s Kitchen Nightmares. The acquisition was for £550m.
The Financial Times reported that RedBird IMI may start exclusive discussions before Christmas. However, there is no assurance that an agreement will be reached.
Several companies, including Banijay, Sony, Goldman Sachs, and Peter Chernin’s North Road Company, have expressed interest in purchasing All3Media. ITV, who owns a large division for producing programs in ITV Studios, is also among the interested bidders.
ITV, along with All3Media, has John Malone’s Liberty Global as a shareholder. Despite being viewed as the top contender to reach an agreement, they ultimately decided not to move forward due to their reluctance to meet the requested price.
The acquisition of the Telegraph and Spectator by RedBird IMI is under strict review by regulators, including an Ofcom inquiry into potential press freedom concerns due to ownership by the UAE, and an investigation by the Competition and Markets Authority. However, the proposed takeover of All3Media is not expected to raise the same level of political and competition issues.
Jane Turton is the head of All3Media, a company that made over £1 billion in revenue and over £100 million in profits in 2022. It was established in 2003 by Steve Morrison, David Liddiment, and Jules Burns, all former executives at ITV. They acquired Chrysalis’s TV business for £45 million. In the last ten years, the company has expanded from 19 production companies to over 50.
All3Media, Liberty Global, and Warner Bros Discovery chose not to provide a statement.
Source: theguardian.com
