ITV Confirms Talks to Sell Media and Entertainment Arm to Sky for £1.6 Billion

ITV confirmed Friday that it is in preliminary discussions with Sky over a possible £1.6 billion sale of its Media and Entertainment (M&E) division, following widespread media speculation about a potential deal that could reshape the UK broadcasting landscape.

In a statement, ITV said it “notes the recent press speculation and confirms that it is in preliminary discussions regarding a possible sale of its M&E business to Sky for an enterprise value of £1.6bn.” 

The broadcaster added that “there can be no certainty as to the terms upon which any potential sale may be agreed or whether any transaction will take place.”

Comcast-owned Sky, which operates pay-TV and streaming services across the US and Europe, is reportedly seeking to acquire the division that houses ITV’s commercial free-to-air television channels and its streaming platform ITVX.

If completed, the transaction would leave ITV focused on its production arm, ITV Studios, which is one of the world’s largest creators and distributors of television content. 

The company’s studios have previously attracted interest from international media groups, including RedBird IMI and Banijay.

The talks come as ITV faces a softer advertising market, with the broadcaster recently warning of a 9 percent drop in fourth-quarter ad revenue following signs of reduced marketing spending ahead of the government’s planned tax increases.