ITV has withdrawn its £1bn provide to purchase Leisure One, the corporate that makes the Peppa Pig TV programme.
It said it still believed within the logic of the deal however that the worth it positioned on the corporate was totally different to Leisure One’s.
Leisure One had previously rejected ITV’s provide, saying it undervalued the agency.
Shares in the company dropped 13% following the information that ITV had deserted its pursuit of the agency.
Speculation about a takeover had led to an increase within the Canada-based agency’s share value.
Leisure One owns greater than 40,000 movie and tv titles, together with final yr’s Oscar-winning Highlight and AMC drama Worry the Strolling Lifeless.
The favored kids’s animation Peppa Pig has taken the market by storm.
In all, the corporate has four,500 hours of TV programming and 45,000 music tracks. Its library is valued at greater than $1bn.
ITV had supplied 236p a share for the corporate, valuing it at greater than £1bn.
Non-public fairness agency KKR had been reportedly additionally enthusiastic about shopping for Leisure One.
In a press release withdrawing its bid ITV mentioned that whereas it believed within the “strategic logic and potential advantages” of shopping for Leisure One, the problem was the value they had been keen to pay.
“It seems this worth is totally different to the extent at which the Board of eOne would at the moment interact in a extra formal course of,” the assertion mentioned.
“ITV simply wasn’t ready to fatten up its bid for Leisure One. Clearly it feels eOne was demanding too excessive a value,” mentioned Neil Wilson, markets analyst at ETX Capital.
Shares within the firm reacted promptly to the announcement.
“eOne’s inventory is down 13% at 217p, effectively beneath the 236p ITV had been keen to pay however above the place it was buying and selling earlier than information of the bid was confirmed. Traders could also be hoping for one more suitor,” mentioned Mr Wilson.