Overview
- ITV told the market it is in preliminary discussions to sell its Media & Entertainment business to Sky for an enterprise value of about £1.6 billion and cautioned there is no certainty a deal will be reached.
- The potential transaction covers ITV’s free-to-air channels and the ITVX streaming platform and does not include ITV Studios, with some reports indicating ITV’s 40% stake in ITN could be part of the talks.
- ITV shares jumped as much as roughly 18–19% in early London trading after the confirmation of discussions.
- The announcement followed ITV’s plan to make temporary cost savings of around £35 million and guidance for a 9% decline in fourth-quarter advertising revenue.
- Analysts expect intense scrutiny from Ofcom and the CMA, citing estimates that a combined Sky–ITV broadcast ad business could control around 70% of UK TV advertising, which may require remedies if the deal progresses.