Canada’s Entertainment One Declines Offer From ITV

Based on reports by an anonymous source, Canadian multinational media distribution company, Entertainment One, has declined an offer to be bought by popular, British commercial television network, ITV PLC.

On the other hand, Entertainment One has admitted to receiving an offer from an undisclosed company which they rejected based on the grounds that they felt it undermined the value of the company. The fee was reported to be around the region of $1.3 billion U.S or 236 pence per share which is now suspected to be from ITV.

The purchase is said to be as a result of ITV’s attempt to diversify its source of revenue as it felt too reliant on advertising. ITV revealed that advertising alone had garnered the company net revenue of £838 million during the first six months of the year. However, following the UK’s decision to leave the European Union, consumer spending suffered leading to a decline in the company’s net profits from £257million to £243 million, although they claim advertising was not affected.