Monday, October 05, 2009

BT Should Bid For ITV

The merger of BT and ITV makes a lot of sense. Both companies are in the last chance saloon and both have something the other badly needs - content in the case of BT and distribution in the case of ITV.

BT needs to get its hands on Freeview before ITV sells off its share in this money cow and ITV needs management that understands something beyond the eighties.

A company with no Chairman of CEO is naturally in play and there may be other companies, such as RTL sunning a slide rule over a potential deal. Sky would dearly love to shore up their virtual commercial monopoly, but it's clear this won't be allowed to happen and Virgin remains a marketing basket case which is hemorrhaging clients despite its superior offering in the market.

The ITV Board should be shaking the tree and seeking a way out of the total mess they're in before it's too late. A new management team will do little more than inherit a poisoned chalice, with debt, declining fortunes and increasing audience acquisition costs all around.

Please, BT, put us pundits out of our misery and table a formal bid before there's little left to bid for.