ITV's chief executive, Carolyn McCall, said she anticipates regulators will approve the proposed merger of the broadcaster's television unit with Sky, citing what she described as deep, structural shifts in the television market.
Speaking to reporters on Monday, McCall characterized the company's outlook on the approvals process as optimistic. "We9re hopeful, and we believe the conditions are right, because the market has changed so fundamentally," she said, framing the argument for the merger around recent industry evolution.
McCall also provided a timeline for the formal scrutiny by authorities, indicating that the regulatory review is expected to take between 12 and 18 months. "We9re talking about the 12 to 18 month regulatory review," she said, and added that she did not expect the process to be quick.
On the terms of the deal as described by the company, ITV will retain a 20% interest in ITN within ITV PLC. Sky, under the same arrangements, will receive a 20% stake in ITN.
McCall reiterated that the company believes the fundamental transformations she highlighted in the television sector will be taken into account during the regulatory assessments. Her comments emphasize that ITV is preparing its case around market change as a core justification for the merger.
The executive9s remarks combined an expression of confidence in the eventual outcome with an acknowledgement of the lengthy, procedural nature of regulatory review. By outlining both the timeline and the ownership split for ITN, McCall conveyed the principal elements investors and other stakeholders can expect as the approvals process unfolds.
Summary of facts stated on the record
- Carolyn McCall expects regulatory approval for the merger of ITV's broadcast unit with Sky.
- She told reporters the company is hopeful because the market has changed fundamentally.
- Regulatory review is expected to last 12 to 18 months and is not expected to be quick.
- Under the merger terms, ITV will retain a 20% stake in ITN within ITV PLC, and Sky will receive a 20% stake in ITN.