Entertainment One rejected ITV’s 236 pence-a-share takeover proposal on August 10.
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ITV has withdrawn its £1bn offer to buy Entertainment One, the company that makes the Peppa Pig TV programme.
Shares in ITV rose 2 percent on the news.
It also owns more than 40,000 film and television titles, including last year’s Oscar-winning hit Spotlight, and its Amblin Partners venture with Steven Spielberg is behind this summer’s movie The BFG, based on Roald Dahl’s classic children’s book.
Some of the company’s major shareholders acquired stakes past year at prices substantially higher than 236p per share. Its library is valued at more than $1bn.
The UK broadcaster explained that while it still saw “strategic logic and potential benefits” of acquiring the business, it was unable to meet eOne’s valuation not having been able to do appropriate due diligence of the business.
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ITV had tabled an offer of just over £1 billion (US$1.3 billion), which has turned down, but many had expected the listed-broadcast group to push through a deal. Although ITV recently announced budget cuts of £25 million (about $33 million), which it blamed on Britain’s decision to exit the European Union, it nonetheless submitted a £1.03 billion takeover offer for eOne. Five days after the ITV approach surfaced this month, it was reported that investment firm KKR and others might bid for the group whose properties include The Mark Gordon Company and cartoon character Peppa Pig. “It appears this value is different to the level at which the board of E One would now engage in a more formal process”. “Investors may be hoping for another suitor”, said Mr Wilson.
