Disney sells stake in U.K.'s GMTV
ITV swallows early morning broadcaster
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The deal, worth £22.25 million ($37 million), means that ITV, the U.K. terrestrial giant, now owns GMTV outright.
Pact involves a one-off cash payment of £18 million ($30 million) plus an additional £4.25 million ($7 million), Disney’s share of the forecast cash balance in the GMTV business at the end of the financial year.
ITV is likely to cut costs as it integrates GMTV -- which airs daily from 6 a.m.-9.25 a.m. on ITV1 -- into the rest of its activities.
In a statement to the London stock market, ITV said: “The acquisition forms part of ITV’s strategy to focus on its core activities and will allow closer integration between ITV and the breakfast service.”
ITV bought STV’s 25% stake in GMTV for £31 million ($51.3 million) in 2004.
GMTV has been hit less hard than ITV by the downturn in advertising, but the station took a knock in 2007 when it was fined a record £2 million ($3.3 million) by regulator Ofcom for cheating audiences in phone quizzes.
