Granada and Carlton have long believed in the vision of creating “one ITV”. As one company, with one management and one clear focus, ITV plc will be able to compete more effectively for viewers in the UK market where multi-channel penetration continues to increase. The group will be more efficiently managed, with lower costs, and will have the scale and reach to develop its strong, distinctive consumer brand.

The Merger has created one of the leading commercial broadcasters in Europe by:

• Uniting ITV1, the most popular commercial television channel in the UK;
• Bringing together two of Britain’s leading producers and distributors of television programmes and films; and

ITV plc believes that the Merger will help maintain a virtuous circle of maximising investment in quality programming which will support and possibly increase its viewing shares in all types of homes and thus enhance its advertising revenues. This would then afford further investment in programming.

ITV plc believes that there will be significant benefits for viewers, advertisers and ITV plc shareholders:

• Viewers will benefit from enhanced programming investment that will be designed to further improve quality and choice, with more drama premieres, more event entertainment and a strong regional identity.
• Advertisers will benefit from the greater ability of the company to invest in and maximise the value of its programming thereby enhancing audience share and commercial impacts, particularly to the key demographic groups. This will allow advertisers to maximise their reach.
• Shareholders will benefit from a simpler and clearer structure, greater efficiency and lower costs. These will include significant synergies together with the increased scale and cashflow of the company which will enable it to exploit future growth opportunities which outweigh those that would be available to Granada and Carlton separately.