ITV has confirmed it is in talks with Sky over a potential £1.6 billion 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 that it was in “preliminary discussions” with Sky’s US parent company, Comcast, following widespread speculation earlier this week about an approach.
“ITV plc 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 company said in a statement to the City.
The talks mark one of the most significant potential shake-ups in UK media in a decade. If completed, the sale would see Sky take control of ITV’s flagship channels and its on-demand service ITVX, consolidating its dominance in both traditional and digital television markets.
The deal could also transform ITV into a pure-play production and content studio, focused on its successful global production arm ITV Studios, which makes hit shows such as Love Island, I’m a Celebrity… Get Me Out of Here! and Line of Duty.
Analysts say such a shift could mirror a wider industry trend, with traditional broadcasters retreating from costly linear broadcasting operations in favour of content production and licensing revenues.
The discussions come as ITV battles a sharp downturn in advertising revenues, driven by weak consumer confidence and corporate caution ahead of Chancellor Rachel Reeves’ 26 November Budget.
Chief executive Carolyn McCall said on Thursday there was evidence of a “softening economy”, with advertisers pulling back spending amid fears of potential tax hikes.
“There is increased uncertainty in the lead-up to the Budget, which has contributed to a tough advertising market,” she said, adding that ITV would delay several major programmes into 2026 to conserve cash.
ITV’s share price has fallen steadily this year, compounded by the decision of US media investor Liberty Global 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 broadcasting assets by Sky would face intense scrutiny from both Ofcom and the Competition and Markets Authority (CMA).
While a deal could strengthen Britain’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 game-changer for UK broadcasting,” said one media analyst at Enders Analysis. “If it happens, Sky would effectively dominate both pay-TV and free-to-air streaming — it’s a strategic masterstroke but a regulatory tightrope.”
For ITV, a sale of its broadcasting arm would represent the end of an era for Britain’s oldest commercial network. It would also raise questions about the future of its public service obligations, which include regional news and accessibility requirements.
Nonetheless, investors are likely to welcome a cash injection that could be redirected toward content investment and international expansion through ITV Studios, now the company’s main profit engine.
If agreed, the deal would be among the biggest UK media transactions since Comcast’s £30bn takeover of Sky in 2018 — and a landmark moment in the evolution of British television.