It looks like ITV has underestimated the capacity of Peppa Pig owner, Entertainment One. Entertainment One rejected ITV?s takeover bid of more than $1.7bn under the 236p share for the company. A recent statement from ITV explained that by obtaining shares from Entertainment One, they will be able to continue improving the basis of scaled international content.
Peppa Pig owner Entertainment One, on the other hand, believes that, the company is partly at a disadvantage in the said deal. In a statement released by Entertainment One, it said the offer ?fundamentally undervalues the company and its prospects”.
Currently, Entertainment One owns more than 40,000 titles in the world entertainment scene, with the most prominent among them — aside from the popular kiddie show Peppa Pig — being the drama ?Fear the Walking Dead?. Under the company?s supervision is a total of 45,000 hours of programming and a massive 45,000 songs in its library.
ITV also said ?A key part of that strategy is continuing to build a scaled international content and global distribution business, with a focus on US-scripted content. ITV believes that the proposed combination with eOne has strong strategic rationale and would further accelerate ITV’s rebalancing of the business.”
Market analysts believe that this recent rejection from Entertainment One may be a major blow for ITV, but also shows how the latter deserves a better offer than that of ITV?s initial proposal.
Markets analyst at ETX Capital Neil Wilson also believes that the same thing happened to Terrestrial TV as Amazon Prime and Netflix increased their demand on services. He said “A sharp fall in its share price this year and the collapse in sterling since the Brexit vote has left it wide open. The cheap pound makes unique UK assets like ITV very desirable.”
Peppa Pig owner Entertainment One, through its spokesperson Patrick Yau, said ?The ball is now in their court to come up with a better offer. In the meantime, we’re going to carry on with our business.?
Financial director Giles Willits of Entertainment One also had choice words for ITV, saying ?Every broadcaster wants great content, so that puts the likes of us in a great position.?