France's Banijay explores takeover bid for UK's ITV, FT reports

(Reuters) -French entertainment company Banijay is in early-stage talks for a takeover offer for British broadcaster ITV that would merge their respective production businesses, the Financial Times reported on Sunday, citing people familiar with the matter.

Banijay has explored options, including an offer for ITV's studio business, the report said, adding that the discussions are at a preliminary stage, with no guarantee that they will lead to a deal.

Banijay has also considered a full takeover of ITV, which would likely involve securing investment from third-party investors, the report added.

Both companies declined to comment.

Banijay said on March 6 that it continues to actively monitor market conditions in readiness for a market opportunity.

Reuters reported in January that ITV was in early-stage talks with Abu Dhabi-backed RedBird IMI to merge their respective production businesses, ITV Studios and All3media.

Other private equity funds had held conversations with ITV about its Studios unit, which made "Rivals" for Disney, in recent months, Reuters also reported.

Production companies have come under pressure from reductions in budgets from ad-funded broadcasters and a drop in commissions from some streamers. This is prompting studio groups to consider mergers as a way to cut costs and pool resources.

(Reporting by Anusha Shah in Bengaluru and Amy-Jo Crowley in London; Editing by Sandra Maler)