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IPA asks OFT to look into ITV GMTV bid.(Brief Article)
The IPA is demanding that ITV's attempted acquisition of GMTV be referred to the Competition Commission if it attempts to amalgamate its sales operation.
ITV is in the process of buying Scottish Media Group's 25 per cent stake in the breakfast television franchise for pounds 31 million - it already owns 50 per cent, with the remainder owned by Disney.
However, in its submission to the Office of Fair Trading, the IPA said it is concerned that if the acquisition is permitted, any merger of the GMTV sales operation could allow ITV to increase the price of its airtime.
It therefore wants the OFT to get assurances from ITV that it will continue to run a wholly separate GMTV sales operation before giving the green light to the purchase.
GMTV only attracts about 2 per cent of net advertising revenue, which amounts to about pounds 62 million each year, but is of particular importance to advertisers, such as toy manufacturers and breakfast cereal ...
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