Granada and Carlton combine operations to win advertisers

LONDON – ITV companies Granada and Carlton Communications are set to combine a number of their operations to cut costs and boost advertising revenue.

The move will spark fresh speculation that the two will merge to form a single ITV company. However, there appears to be lingering concern that a merger might yet run into regulatory problems despite its way apparently being cleared by the draft communications bill announced earlier this year.

The two will combine a number of operations, including marketing and programming, which it is hoped will improve their financial performance and make them more attractive to advertisers.

The joint operations are due to be in place as early as the autumn and it is being described by Gerry Murphy, the Carlton chief executive, as a virtual enterprise.

The move stops just short of a merger. Under broadcasting rules governing advertising sales the two are not allowed to combine their sales operations, but they can improve marketing to advertisers which they hope will result in high advertising revenues.

A spokesman for Carlton, said: "Under current competition rules a full merger would be very difficult. This is an initiative to make ITV more competitive, to improve its efficiency and marketing."

He added: "We are trying to make the most of marketing ITV to advertisers, to make a coherent and competitive offering in a multi-channel environment. It is still being developed but will be operating from the autumn. Cost savings are not the primary aim."

It is hoped that the initiative will go some way to repairing the reputations of the two in the eyes of the market after the damage done by the collapse of ITV Digital and the ensuing fiasco around the legal case bought by the Football League.

If you have an opinion on this or any other issue raised on Brand Republic, join the debate in the .

Market Reports

Get unprecedented new-business intelligence with access to ±±¾©Èü³µpk10’s new Market Reports.

Find out more

Enjoying ±±¾©Èü³µpk10’s content?

 Get unlimited access to ±±¾©Èü³µpk10’s premium content for your whole company with a corporate licence.

Upgrade access

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an alert now

Partner content