# ITV shares jump on reports it could sell stake in production arm Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-17 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: ITV Considering Selling Stake in ITV Studios - Financial Meta Description: ITV shares surge on news of potential stake sale in ITV Studios, valued at over parent company's market cap. Analysts see positive impact on valuation. URL: https://financedigest.com/itv-shares-jump-on-reports-it-could-sell-stake-in-production-armhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-17t080304z1lynxmpei9g096rtroptp4itv-outlook-1736815011071-compressed.jpg) LONDON (Reuters) – Shares in ITV jumped 7% in early deals on Monday, lifted by a Financial Times report that it is considering selling a stake its production arm ITV Studios. Britain’s biggest free-to-air commercial broadcaster has recently fielded expressions of interest in ITV Studios, the report said citing people familiar with the discussions. ITV Studios makes programmes such as “Love Island” and “Coronation Street” and is one of the largest producers in Europe. Some analysts say the business could be worth more than its parent company’s 2.5 [billion pound](https://www.financedigest.com/shell-to-evaluate-25-billion-pound-british-investments-after-windfall-tax.html "Shell to ‘evaluate’ 25 billion pound British investments after windfall tax") ($2.82 billion) market capitalisation. Shares in ITV rose to 66 pence at 0738 GMT, reaching levels last seen in September. The [stock is down 40% this year](https://www.financedigest.com/world-stocks-rally-nikkei-closes-at-33-year-peak.html "World stocks rally, Nikkei closes at 33-year peak"). Chief executive Carolyn McCall has complained that the value of ITV Studios was not reflected in the [group’s share](https://www.financedigest.com/saipem-shares-drop-group-says-cannot-explain-why.html "Saipem shares drop, group says cannot explain why") price, and the newspaper said that was why the group was looking at options to help recognise that value. Citi analysts said on Monday that [selling a stake](https://www.financedigest.com/intercos-fund-shareholders-l-catterton-otpp-sell-6-stake-at-7-discount.html "Intercos fund shareholders L Catterton, OTPP sell 6% stake at 7% discount") in ITV Studios would make sense. If the company could find a [way of changing perceptions of the value](https://www.financedigest.com/5-ways-to-maximise-the-value-of-instant-payments.html "5 ways to maximise the value of instant payments") of the ITV Studios business this could be meaningfully accretive to valuation,” they said. Potential buyers include [private equity](https://www.financedigest.com/procurementin-european-private-equity-investment-adding-value-to-the-boardroom.html "Procurement in European private equity investment – adding value to the boardroom.") groups and other large independent producers such as Bertelsmann’s Freemantle or FL Entertainment, the parent company of Banijay, the newspaper added. An [ITV spokesperson declined to comment on the FT report](https://www.financedigest.com/britains-prince-harry-arrives-at-balmoral-itv-reporter.html "Britain’s Prince Harry arrives at Balmoral – ITV reporter") on Sunday. ($1 = 0.8880 pounds) (Reporting by Sarah Young; Editing by Alex Richardson) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---