ITV takeover on the cards as Crozier steps down

Britain's second-oldest broadcaster, home to the world's longest-running soap opera Coronation Street, is looking for a new chief and may become a target itself.

William Roache (R),the world's longest-serving soap opera star, as Ken Barlow in a 1960 episode of Coronation Street. ITV, the show's home for 57 years, is looking for a new chief executive and may evShow more

The UK broadcaster ITV’s chief executive Adam Crozier is stepping down after seven years, as the TV channel shakes up its executive ranks amid a Brexit-derived advertising slowdown.

Mr Crozier will leave on June 30 and a successor will be announced “in due course,” ITV said on Wednesday. The finance director Ian Griffiths will take on the added role of chief operating officer, and the chairman Peter Bazalgette will be the executive chairman during the search.

ITV is known for Coronation Street, the world’s longest-running soap opera, which has been on air since 1960. the company made a string of acquisitions under Mr Crozier including The Voice maker Talpa Media, diversifying the company to make it less dependent on advertising. A bid to buy the Peppa Pig producer Entertainment One ended without a deal last year.

Advertising still makes up more than half of sales and the company blamed a downcast outlook in March on economic uncertainty surrounding the UK’s pending negotiations to leave the European Union.

The company, about 9.9 per cent owned by the billionaire John Malone’s Liberty Global, is a perennial subject of takeover speculation, talk that has intensified since the Brexit vote last June.

The management change presents a prime opportunity for a potential buyer, said Philip Harris, a fund manager at EdenTree Investment Management in London, who holds ITV shares.

“If someone was going to buy it, you’d be surprised if they didn’t do it in the next six months,” Mr Harris said. “It’s at one of those strategic crossroads where an opportunistic bid might be well received by shareholders.”

A takeover is “a definite possibility” following Mr Crozier’s departure, with a joint bid from Liberty and Discovery Communications potentially on the cards, said Ian Whittaker, a media analyst at Liberum, by phone.

ITV shares have almost quadrupled since Mr Crozier became the chief executive in April 2010.

Mr Crozier came to public attention as the surprise appointment to the role of chief executive of The Football Association, the governing body of England’s national game, football, aged just 35 and having had no experience of business in football. His tenure lasted just two years.

His departure from ITV has been in the works for some time. Sky News reported in December that the broadcaster had hired the executive-search firm Spencer Stuart for succession planning.

“It is somewhat surprising that ITV haven’t been able to find a successor yet for Crozier,” said Neil Campling, an analyst with Northern Trust Capital Markets. “They’ve had five to six months.”

Mr Campling said traditional broadcasters are under pressure from online networks such as Netflix and he remains sceptical ITV will be acquired.

Mr Bazalgette said Mr Crozier had talked to him and the board about his plans “for some time”. Mr Crozier said he intends to build “a portfolio of roles” across the corporate world and private sectors.

“He has made a fantastic contribution to ITV and the board is deeply indebted to him for his strong leadership,” Mr Bazalgette said. “Under Adam, external revenues have grown by over £1 billion [Dh4.74bn].”

In February, The Telegraph reported Mr Bazalgette was under pressure from shareholders who sought to make Mr Crozier’s pay more reliant on the profit generation of the TV production investments he had engineered.

* Bloomberg

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