RedBird scrubs ITV Studios takeover as UK regulatory headwinds cited

Abu Dhabi-backed fund RedBird IMI has scrapped its planned takeover of ITV Studios, the production arm behind hits such as Rivals and Run Away, amid what its executives describe as a burdensome UK regulatory environment.

The Mail previously reported that talks were underway to form a £3 billion TV powerhouse between ITV and RedBird’s All3Media, but RedBird is no longer pursuing a deal. ITV Studios is responsible for Disney+'s Rivals, starring David Tennant, and Netflix’s Run Away, among other productions. ITV has been betting heavily on its production arm as a growth engine, licensing and co-producing shows for major streaming platforms while seeking scale in an increasingly global market.

Speaking at a conference in Cambridge yesterday, RedBird IMI chief executive Jeff Zucker criticized the regulatory framework in Britain, saying: “The regulatory environment here has to change if the UK is going to continue to thrive. As we think about investing in companies that we want to grow and maybe eventually take public, London is not necessarily the place we would want to do that.” The remarks underscore how regulatory headwinds can shape attraction of foreign capital to UK media.

The decision highlights tensions facing UK media consolidation efforts as players seek to build international platforms through in-house production units. ITV Studios’ slate includes high-profile titles that feed streaming partnerships around the world, and RedBird’s withdrawal from a potential tie-up could influence how foreign investors view UK opportunities in the near term. While ITV continues to pursue growth through its production arm, market participants will be watching regulatory developments and their potential impact on future deals, investments, and the timing of any potential public listings.