ITV has confirmed it is "actively exploring" the acquisition of All3Media, the producer of Gogglebox and The Traitors.
The London-headquartered company is the parent of Liverpool-based Lime Pictures, which is behind Hollyoaks, The Only Way is Essex and Geordie Shore.
The confirmation comes after a report by Reuters that ITV was considering a move to snap up the production firm from current joint owners Warner Bros Discovery and Liberty Global to potentially combine it with its ITV Studios arm.
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In a statement to the London Stock Exchange, ITV said: "ITV plc notes the recent media speculation and confirms that it is actively exploring the possible acquisition of All3Media.
"There can be no certainty as to whether any transaction will take place, nor as to the terms of any such transaction.
"A further announcement will be made if and when appropriate."
According to its most recent financial accounts, Lime Pictures achieved a turnover of £63.3m and pre-tax profits of £5.2m in 2021, up from £50.8m and £3.2m in 2020.
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Those figures compare to a turnover of £69.5m and pre-tax profits of £5.7m it reported in 2019.
The company was founded by Sir Phil Redmond in the early 1980s as Mersey Television and was acquired by All3Media in 2005.
All3Media comprises 40 production and distribution companies and is owned by Warner Bros Discovery and Liberty Global.
The first major production from Lime Pictures was soap opera Brookside for Channel 4 while it took over the production of Grange Hill, which Sir Phil Redmond had also created, in 2003.
Since 2016 the company has produced Celebs Go Dating for E4 and was also behind Free Rain for Netflix.
The business also has bases in London, Los Angeles and Leeds.
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