ITV has revealed talks with Sky, the owner of Sky News, over the possible sale of its media and entertainment (M&E) division in a deal worth £1.6bn. Sky News understands the approach centres on the potential creation of a UK-focused streaming giant.
The division encompasses ITV’s current broadcast operations and channels, which heavily rely on advertising revenue. The discussions do not involve the company’s studios arm, responsible for producing shows like I’m A Celebrity… Get Me Out Of Here!
«There can be no certainty as to the terms upon which any potential sale may be agreed or whether any transaction will take place,» stated ITV in a communication to the London Stock Exchange. «A further announcement will be made in due course if appropriate,» it concluded.
Following the announcement, ITV shares surged by 15% in early trading. ITV chief executive Dame Carolyn McCall reassured staff in an email that there is currently no agreement in place and uncertainty surrounds the potential acquisition. She emphasized that it’s essential to remain transparent and that business operations continue as usual.
Sky, wholly owned by the US media and entertainment firm Comcast, declined to comment on the matter. The revelation of the discussions by Bloomberg News prompted ITV to release its statement. In light of a recent advertising slowdown, ITV is taking measures to save costs, including delaying some programs over the coming months.
The company’s latest financial results project a 9% decline in ad revenues for 2025, attributed to advertisers holding back on spending in anticipation of the chancellor’s budget. The potential deal between Sky and ITV aims to enhance the appeal to advertisers in the UK streaming market by focusing on UK audiences.
ITV has been a recurring subject of takeover speculation. Reports earlier this year suggested talks with Abu Dhabi-backed group RedBird IMI about a potential merger of their respective production businesses. Additionally, French media group Banijay was rumored to have explored options for offering to acquire ITV’s studio business or a complete takeover.
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