Banijay Has No Immediate Plans to Buy ITV Studios as CEO Talks Consolidation at SXSW London

Will they or won’t they? Sell or merge, that is. That has been a recurring question about U.K. TV giant ITV and its ITV Studios arm. One of the long-rumored potential buyers or merger partners is independent production giant Banijay Entertainment (Peaky Blinders, Black Mirror, Big Brother, Survivor, MasterChef). So it was no wonder that Banijay CEO Marco Bassetti was confronted with the ITV question at the inaugural SXSW London during a Wednesday appearance.

Banijay has been reported to have been considering a possible takeover play for U.K. TV giant ITV, or its ITV Studios production business. Such a deal would bring together two of Europe’s largest TV production companies. ITV’s studio division has previously also attracted interest from such companies as RedBird IMI and its production giant All3Media, as well as private equity groups.

“No, well…,” Bassetti said in response to a question about whether such a deal was in the works. He added that he wanted to speak rather about consolidation in general today.

Asked by reporters after the session if these comments on stage meant a definite “no” to an ITV Studios deal, Bassetti declined to comment.

But it is understood that Banijay has no immediate plans for an acquisition and that there are currently no discussions taking place about a potential deal.

On stage, Bassetti had highlighted the benefits of size. “To be honest with you, we are living in a world where consolidation and scale are really important,” he said, sharing that a few years ago, the firm had been afraid to be seen as “too big, too powerful.” But now, more consolidation is beneficial to industry players that need hit content, intellectual property, and production budgets in line with audiences’ expectations, he concluded.

The Banijay boss also addressed the role of AI in the media and entertainment industry, citing the need for “very strict rules in order to defend creativity,” summarizing his team’s role this way: “How can you defend the creative … from AI.” The company tries “to be transparent as much as possible,” he concluded. “When you are working for premium content, AI has a relative impact.”

Wednesday’s session, entitled “Building a Powerhouse,” took place at the Rich Mix cinema and art hub in the Shoreditch neighborhood of the British capital and was part of the festival’s first-ever European edition of SXSW.

On the SXSW London stage, Bassetti was in conversation with Jordan Schwarzenberger, the manager of YouTube stars The Sidemen and co-founder of agency Arcade Media.

The popularity of The Sidemen, famed for their videos of challenges, sketches, and video game commentaries across their YouTube channels, has continued to rise. Late last year, Netflix green-lit a second season, as well as a U.S. version, of the popular Sidemen reality series Inside. It features influencers and reality stars confined to a house for a week, vying for a million pounds ($1.26 million) prize.

Bassetti asked Schwarzenberger about competition from the likes of MrBeast and potential concerns that YouTube could change its terms of trade to the detriment of The Sidemen. “The group dynamic is what’s kept them going for that long,” he said about The Sidemen. “I think [regarding] MrBeast, with all credit to somebody who can handle 400 million subscribers on their shoulders and have it all on their back and all on their face and reputation, the instinct for creators has often been to put their face forward for everything. I think there’s a world coming potentially when MrBeast produces [through] MrBeast Studios, and the channel becomes a platform without him.”

He added: “The way that he’s built that actually is that he’s not as integral to the success of the channel as maybe the instinct would seem. He could have other hosts on that platform. … With Beast Games, there’s no reason why that can’t transcend into something which doesn’t have him hosting it. I don’t think he’s as integral to that format.”

Streamers give creators something that they don’t have. “Global editorial reach” and push thanks to Netflix, something that “YouTube cannot give,” was a key reason for The Sidemen to strike a deal with the streaming giant, Schwarzenberger said.

How about MrBeast’s Amazon deal? Schwarzenberger argued that it is all about money. “He’s not going to get any more audience on Amazon than he’s going to get on his channels. He has 400 million subscribers – huge,” he highlighted. “But [it is] to have 100 million [in money] to play with, even he doesn’t have that in liquid cash to put into a show. So, Amazon can provide, you know, Bezos money and give him the funds to go and buy an island.”

SXSW London runs through June 7. Penske Media, the parent company of The Hollywood Reporter, is the majority stakeholder of SXSW.