Sky in Advanced Talks to Acquire ITV Media for £1.6 Billion

Comcast’s European pay-TV giant Sky is negotiating a major acquisition. The target is the media and entertainment division of UK broadcaster ITV. A potential deal could be worth an estimated £1.6 billion.

The talks were confirmed by ITV in an official statement released early Friday. This move signals a significant consolidation within the British media landscape.

What’s Included in the Potential Deal

The Media and Entertainment unit includes ITV’s flagship free-to-air channels. It also encompasses the ITVX streaming service. According to Reuters, the division’s revenue was £1.45 billion for the first nine months of the current financial year.

The acquisition would significantly expand Sky’s content portfolio and direct-to-consumer reach. It would combine Sky’s premium pay-TV offerings with ITV’s mass-market free channels.

Strategic Moves and Market Context

This potential acquisition is part of a broader strategic push by parent company Comcast. Reports also indicate Comcast is evaluating a bid for parts of Warner Bros. Discovery. This suggests a concerted effort to scale up in the competitive global streaming market.

For ITV, a sale would allow a sharper focus on its production powerhouse, ITV Studios. This unit produces hit shows like Love Island and Fool Me Once. The company recently announced cost-saving measures amid softer advertising demand.

This potential Sky ITV acquisition would reshape the UK broadcasting sector. The deal combines legacy television with modern streaming ambitions. Its outcome will be closely watched by industry leaders and regulators alike.

Thought you’d like to know

What parts of ITV are not included in the deal?

The deal does not include ITV Studios. This is the production arm behind popular shows like *Love Island* and *Britain’s Got Talent*. ITV Studios will remain a separate entity under ITV’s ownership.

How would this deal affect ITVX?

ITVX, the UK streaming platform, is part of the proposed sale. It would become part of Sky’s broader content and distribution network. This could lead to expanded content offerings for subscribers.

Who is the CEO of Sky?

Sky is led by Chief Executive Officer Dana Strong. She oversees Sky’s operations across the UK, Ireland, and Italy. The company has been expanding its telecom and original content investments under her leadership.

Why is ITV considering this sale?

ITV has faced softer advertising demand recently. The company announced temporary cost-saving measures just before the deal talks became public. Selling the M&E division would provide capital and sharpen the company’s strategic focus.

What is the value of the potential acquisition?

The enterprise value under discussion is £1.6 billion. That is approximately $2.1 billion. The final terms have not yet been agreed upon by both parties.

Trusted Sources

Reuters