The current owners acquired All3Media in 2014 for £550m in a bet on increased production as competition for viewers from Netflix and its streaming rivals triggered a “golden age” of television.
All3Media’s owners are seeking a sale as their own strategies are reshaped by other dealmaking and financial pressures, partly wrought by brutal competition.
Discovery bought into All3Media when it had no in-house production but has since merged with Warner Bros, one of the major Hollywood studios that currently makes more than 110 series for various broadcasters and streamers.
The deal saddled the company with heavy debts that have prompted it to rethink how much of its future to stake on streaming, and to raise cash from asset sales.
Liberty Global’s focus has always been telecoms but it has toyed with television over years when it appeared streaming’s reliance on the internet might trigger a lucrative intertwining.
Instead, investment in better broadband has proved key and the US-listed company has been gradually selling off its assets.
As recently as last year it said there were no plans to sell All3Media. However, in a recent earnings call management said Liberty could “potentially benefit from certain asset sales from our venture portfolio”.
Liberty Global’s dabbling in television has also made it the biggest shareholder in ITV, a probable bidder for All3Media.
The broadcaster has a strong balance sheet and a takeover would allow it to significantly expand its valued ITV Studios arm. The production division is of increasing importance as ITV continues to seek stability away from declining traditional broadcasting and the volatile advertising market.