Overview
- ITV said it is in preliminary discussions with Sky, owned by Comcast, over a potential £1.6bn sale of its media and entertainment division and stressed there is no certainty a transaction will occur.
- The media and entertainment unit comprises ITV’s free-to-air channels and the ITVX streaming platform, while the production business ITV Studios is explicitly not included.
- The confirmation followed ITV’s update that it will make £35m in temporary cost savings and expects fourth-quarter advertising revenues to decline by about 9%.
- ITV shares rose as much as 18% in early London trading after the company acknowledged the talks.
- Analysts expect intense competition scrutiny due to the combined TV advertising footprint, and ITV has engaged Morgan Stanley and Robey Warshaw as advisers.