Carlton Communications

Carlton Communications plc was a British media company. It was led by Michael P. Green and listed on the London Stock Exchange from 1983 until 2 February 2004, when it was bought by Granada plc in a corporate takeover to form ITV plc. Carlton shareholders gained approximately 32% of ITV plc.

As well as being the parent company of Carlton Television Limited it was also involved in several other media and broadcasting businesses and was a constituent of the FTSE 100 Index.

In 1967 Michael Green established a printing and photo-processing company, Tangent Industries, with his brother-in-law and his father-in-law (the future Lord Wolfson). In 1982, Green bought Transvideo, renaming the company Carlton Television Studios. A year later the name was changed to Carlton Communications when the company went public. Soon after, the Moving Picture Company (MPC), Europe's largest video facilities provider, joined Carlton in a joint venture to acquire the UK subsidiary of California's International Video Corporation, IVC UK Ltd. Carlton acquired MPC itself in July 1983.

Green tried unsuccessfully to acquire a broadcasting station. He first tried for Thames (see below) before trying for LWT. The Independent Broadcasting Authority (IBA) intervened, allowing Green only a 10 percent share. In response, Green sold his existing 5 percent share for £1 million. Carlton also failed to win the direct satellite broadcasting franchise (despite the fact that Carlton was already operating their own DBS system called "Skyscan"- and presumably continued offering the service until BSB launched in 1990), which went to British Satellite Broadcasting (BSB). In March 1987, Carlton acquired a 20 per cent in Central Television from Ladbrokes for £30million which finally gave Carlton its first stake in a terrestrial broadcasting company. Bob Phillis became Carlton's representative on the board of directors, having previously worked for Central before joining Carlton as managing director. Carlton increased its portfolio of media companies with the acquisition of Zenith Productions for £7.3 million.

Carlton's most significant move was to outbid Thames Television for the ITV London weekday licence in 1991. Previously, in 1985, Carlton had executed a failed take-over bid for Thames after Thorn EMI and British Electric Traction decided to sell its share of Thames. The deal was blocked by both Richard Dunn, chief executive of Thames, and by the IBA, which concluded "the proposal would lead to a major change in the nature and characteristic of a viable ITV programme company". Michael Green was left "bewildered", saying: "We are surprised at the IBA's decision. I'm absolutely certain it would not have been a major change to Thames. We have always suggested that we would make absolutely sure the company would continue to be what it is at this moment in time." IBA said it had nothing against Carlton owning part of an ITV company, but believed 'any' single ownership of an ITV company was undesirable.

Thames finally floated on the stock market in July 1986. A few days afterwards, speculation appeared that Carlton had attempted to buy a sizable number of shares. Michael Green, chairman of Carlton, was quoted as saying, "I can't possibly comment", but a Thames spokesperson said: "It does seem quite likely; however, no one shareholder can own more than 10% of our equity, so it's difficult to see what they might have in mind".

It has been said that Green talked to the then Prime Minister Margaret Thatcher on the matter, which in turn may have helped to shape the Broadcasting Act 1990 which replaced the IBA with the Independent Television Commission and the change in franchise allocation procedures. Carlton Television had a policy of being a publisher-broadcaster, not producing any programmes of its own; even its news was outsourced to London News Network. By 1994, the ITC had criticised the channel for its "poor network programming", and said further improvements could be made.

During 1985, video company, Abekas Video Systems, was purchased for £52.8 million.