ITV plc (LON:ITV) has withdrawn its proposal to acquire Canadian TV and film studio Entertainment One (LON:ETO) after its initial offer was turned down.
The broadcaster said it had a “clear view of the value of the business, recognising that this value would need to be verified by appropriate due diligence.”
“It appears this value is different to the level at which the board of eOne would currently engage in a more formal process.”
The bid had valued the group at 236p a share, but exact details were not revealed.
ITV said its strategy to build a stronger international business through acquisitions would continue.
In an attempt to strengthen its studios division and reduce its reliance on advertising, ITV embarked on a spree of acquisitions. Last year it bought out Talpa, the studio that makes The Voice, which will see the talent show move from BBC to ITV next year.
The Entertainment One bid is the first publicly acknowledged bid by the broadcaster to have fallen through.
Last month ITV studios reported a 30% rise in revenues to £651mln, but it also warned advertising revenue could fall by 1% for the nine months ended September.
Toronto-based Entertainment One owns more than 40,000 TV and film franchises, including Peppa Pig, Fear the Walking Dead and Grey’s Anatomy. Its library amounts to 4,500 hours of TV programming and is valued at more than US$1bn.
ITV was rumoured to have eyed the group back in April, but at the time Entertainment One denied it had been approached.