UPC purchase of TV3 set to ramp up pressure on UTV - Davy
UPC's purchase of TV3 is likely to ramp up the pressure on struggling UTV Ireland, according to Davy Stockbrokers.
The deal, worth as much as €87m, means UPC's owner, media giant Liberty Global, will be probably be able to bring new content to the station and attract audiences from competitors, analyst Robert Stokes said.
"We view this deal as a negative for the already struggling UTV Ireland," Stokes said. "Liberty is buying TV3 at a good point in the advertising cycle as spending on TV ads is strengthening after years of freefall."
Liberty bought a tv station in Belgium last year and also has a small stake in ITV.
"For UPC, the opportunities for investing in TV programming, coupled with the group’s distribution abilities, were among the benefits of the deal. TV3 will now be in a position to invest in content and infrastructure. The deal will see TV3 benefit from the synergies of a major platform provider like UPC," Stokes said.