ITV buys game show producer

ITV today agreed to buy the production company behind BBC game shows Eggheads and Who Dares Wins in a deal worth up to £35m (€48.5m).

The broadcaster’s move to snap up 12 Yard will see the BBC air shows made by its rival and is also expected to provide ITV with a sneak preview of new programme ideas from the game show specialist.

The deal forms part of its plan to increase the number of programmes made in-house at its main ITV1 channel under boss Michael Grade’s turnaround strategy, unveiled in September.

Today’s announcement comes as the BBC is holding talks with 12 Yard to secure an extra 300 episodes of daytime quiz show Eggheads.

But an ITV spokesman stressed the buyout “did not change the status of 12 Yard with regards to the BBC”.

It will pay £26m (€36m) upfront for 12 Yard, with the remaining £9m (€12.4m) paid in 2011, some of which is dependent on profits.

Founder David Young, the former head of BBC light entertainment and creator of The Weakest Link, will bank a multi-million-pound fortune from the deal, as will fellow shareholder Andy Culpin, who between them own a 50% stake.

Hat Trick Productions was the team’s partner in the company, owning the remaining 50%.

Mr Young and Mr Culpin are tied for at least three years under the terms of the acquisition.

The news marks the first acquisition since ITV’s growth strategy was announced and is the first significant acquisition led by global content director Dawn Airey, the former BSkyB and Five executive.

She reportedly has a £200m (€276m) acquisition war chest to spend as ITV seeks to revive its fortunes.

The group reported a 39% slide in half-year profits, at £173m (€239.5m), the month before launching its revamp plans.

Mr Grade, who joined in January from the BBC, said he wanted ITV to be the UK’s favourite source of free entertainment by 2012.