ITV in £1.6 Billion Talks to Sell Television Business to Sky as Broadcaster Faces Breakup

ITV has entered preliminary discussions to sell its television broadcasting business to Sky in a deal worth an estimated £1.6 billion, marking a potential seismic shift in the UK media landscape. The possible agreement, which would see ITV’s traditional broadcast channels and streaming platform ITVX move to Sky’s US parent company Comcast, excludes ITV Studios, famed for producing hit series like Love Island and I’m a Celebrity Get Me Out of Here.

This development comes amid a prolonged struggle for ITV to find its footing in an increasingly competitive streaming market. Dame Carolyn McCall, ITV’s chief executive, has been exploring options for a strategic breakup of the group for over eighteen months as advertising revenues remain sluggish and market pressures intensify.

ITV’s market capitalisation has tumbled from a peak of over £11 billion in 2015 to roughly £2.5 billion today, a decline bosses attribute to a gloomy advertising outlook and the effects of recent fiscal policy. The company’s share price jumped by 18 per cent following confirmation of the sale talks, reflecting renewed investor confidence in the broadcaster’s assets.

ITV Studios remains highly prized, with significant interest from major international production houses such as Banijay, yet negotiations have reportedly stalled and some potential buyers, including Abu Dhabi’s RedBird IMI, have exited the process. Analysts suggest that ITV’s production arm alone could command a valuation surpassing the broadcaster’s total market worth.

For Sky, acquiring ITV’s broadcasting business offers the chance to create a scaled commercial UK streaming service capable of taking on giants like Netflix and Disney. With 16.4 million monthly active users on ITVX, the merger would provide Sky with a powerful promotional gateway via ITV’s established channels and a deep portfolio of sporting rights, including collaborations across football, cricket, golf, Formula One, the Euros, and Six Nations.

Importantly, public service broadcasting requirements would still apply to any new owner, ensuring continued delivery of news and regional programming. ITV recently renewed its Ofcom licence, securing its place on channel 3 for a further decade. The move is expected to attract close scrutiny from regulators, with industry voices calling for relaxation of competition rules to enable UK broadcasters to unite against global streaming competition.

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