Love Island broadcasting giant ITV has seen its shares leap higher on reports the group is being eyed for a possible takeover.

Shares in ITV surged as much as 10% in Monday trading after it was reported by Sky News at the weekend that private equity firm CVC Capital Partners was looking to team up with other potential bidders for the British broadcaster.

It is understood that CVC is joining forces with a European broadcaster to consider a bid for parts or all of ITV.

A depressed valuation and relative weakness in sterling are the context for reports of bid interest in ITV – with the possibility of yet another domino falling in a UK market which has seen plenty of mergers and acquisitions in 2024

The reported takeover interest follows a share price slump in recent months for the group behind hit shows I’m A Celebrity… Get Me Out of Here! and Love Island, whose stock has fallen 7% over the past month.

It is thought that CVC is mulling over a deal that would see it buy the production arm, ITV Studios, with the European broadcast partner taking over the broadcasting business and ITVX streaming platform.

RedBird Capital-owned All3Media and Mediawan, which is backed by the private equity firm KKR, are also said to be potential bidders interested in ITV Studios.

But the CVC takeover talks are said to be at an early stage.

ITV has long been touted as being a takeover target in recent years.

Chief executive Dame Carolyn McCall has also reportedly been looking at a demerger of the company’s two main business units.

Russ Mould, investment director at AJ Bell, said: “A depressed valuation and relative weakness in sterling are the context for reports of bid interest in ITV – with the possibility of yet another domino falling in a UK market which has seen plenty of mergers and acquisitions in 2024.”

He added: “Several names from private equity and within the industry have been suggested as potential suitors – although nothing has emerged yet which has reached the threshold required for ITV to make any disclosures.

“Whether ITV’s public service broadcasting remit might be an obstacle to any deal remains to be seen.

“There is further speculation that ITV might look to demerge the business on the basis that the individual parts might attract a better valuations as standalone entities – particularly its ITV Studios production arm.”

CVC Capital Partners and ITV declined to comment.