ITV has confirmed it is in talks with Sky over a potential £1.6bn sale of its media and entertainment business, including its traditional TV channels and its streaming platform ITVX, in a move that could redefine the future of British broadcasting.
The broadcaster said this morning it was in “preliminary discussions” with Sky’s US parent company Comcast, following widespread speculation about a move earlier this week.
“ITV plc notes recent speculation in the press and confirms that it is in preliminary discussions about a potential sale of its M&E business to Sky for an enterprise value of £1.6 billion,” the company said in a statement to the City.
The talks represent one of the most significant potential shakeups in British media in a decade. If the sale is completed, Sky would take control of ITV’s flagship channels and its on-demand service ITVX, cementing its dominance in both the traditional and digital television markets.
The deal could also transform ITV into a pure-play production and content studio, focusing on its successful global production arm ITV Studios, which produces hit shows such as Love Island, I’m a Celebrity… Get Me Out of Here! produced. and Line of Duty.
Analysts say such a shift could reflect a broader industry trend in which traditional broadcasters are retreating from costly linear broadcast operations in favor of content production and licensing revenue.
The discussions come as ITV struggles with a sharp fall in advertising revenue due to weak consumer confidence and business caution ahead of Chancellor Rachel Reeves’ Budget on November 26.
Chief Executive Carolyn McCall said Thursday there were signs of a “slowing economy” as advertisers pulled back on spending amid fears of possible tax increases.
“There is increased uncertainty in the run-up to the budget, which has contributed to a difficult advertising market,” she said, adding that ITV would delay several major programs until 2026 to save money.
ITV’s share price has fallen steadily this year, compounded by US media investor Liberty Global’s decision to halve its stake from 10% to 5% in October. The group is now expected to exit completely by the end of the year.
Media analysts said any takeover of ITV’s broadcast assets by Sky would face intense scrutiny from both Ofcom and the Competition and Markets Authority (CMA).
While a deal could strengthen the UK’s domestic media ecosystem against US streaming giants such as Netflix, Amazon Prime Video and Disney+, regulators would be concerned about Sky’s growing control over UK distribution channels.
“This would be a turning point for British broadcasting,” said a media analyst from Enders Analysis. “If it happens, Sky would effectively dominate both pay TV and free TV streaming – that’s a strategic masterstroke, but a regulatory balancing act.”
For ITV, a sale of its broadcast arm would mark the end of an era for Britain’s oldest commercial broadcaster. It would also raise questions about the future of its public service commitments, which include regional news and accessibility requirements.
Still, investors are likely to welcome an injection of cash that could be redirected to content investments and international expansion through ITV Studios, now the company’s main profit engine.
If agreed, the deal would be one of the largest British media transactions since Comcast’s £30bn takeover of Sky in 2018 – and a milestone in the development of British television.
