ITV has revealed talks with Sky, the proprietor of Sky Information, over the potential sale of its media and leisure (M&E) division in a deal price £1.6bn.
Sky Information understands the strategy centres on the potential creation of a UK-focused streaming big.
The division takes in ITV’s present broadcast operations and channels, that are largely depending on promoting income.
The talks don’t embrace the corporate’s studios arm, which makes exhibits akin to I am A Superstar… Get Me Out Of Right here!
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“There could be no certainty as to the phrases upon which any potential sale could also be agreed or whether or not any transaction will happen”, a press release by ITV to the London Inventory Trade mentioned.
“An extra announcement might be made sooner or later if applicable”, it concluded.
ITV shares jumped by 15% in early buying and selling in response to the assertion.
Programmes proven on ITV embrace Who Needs to be a Millionaire? Pic: PA
ITV chief govt Dame Carolyn McCall informed workers in an e mail: “It is essential so that you can bear in mind that at present there isn’t any settlement in place and there’s no certainty round whether or not any acquisition will go forward.
“I recognize this information could come as a shock… Whereas we haven’t any extra data we are able to share at this time, I need to reassure you we might be as open and clear as potential. At this stage, it’s totally a lot enterprise as traditional.”
Sky, which is wholly owned by the US media and leisure agency Comcast, declined to remark.
ITV launched its assertion after information of the discussions have been first revealed by Bloomberg Information.
Katie Spencer, arts and leisure correspondent
When ITV launched in 1955, the thought was to problem the BBC’s monopoly. Which they did.
However this could be a large adjustment – worlds away from these early days when ITV was successfully a sequence of regional broadcasters with adverts coming below one umbrella.
Whereas the USP of this deal appears to be making a UK-focused streamer – with Sky’s American house owners – the scale of this deal would see ITV and Sky be taken critically on a world stage.
In fact, it’d rely upon regulatory approval.
A decade in the past, Ofcom would have doubtless mentioned no technique to a deal like this due to the dominance it could give the pair… however a lot is altering extremely shortly inside TV.
For linear TV, the scenario is critically bleak with streamers having moved in – plus the massive variety of younger individuals migrating to YouTube.
What’s so fascinating about that is how – if the deal goes forward – it could essentially reshape our tv panorama.
Simply hours earlier, the corporate’s newest monetary outcomes confirmed it was transferring to save lots of hundreds of thousands of kilos attributable to an promoting slowdown.
ITV reported delays to some programmes over the approaching months to save lots of prices consequently.
It predicted a 9% decline in advert revenues throughout 2025, with the latest traits being blamed on advertisers pulling again on spending in anticipation of the chancellor’s finances later this month.
Sky is owned by the US firm Comcast
It’s understood {that a} potential deal between Sky and ITV would search to create a bigger, extra engaging proposition for advertisers within the UK streaming sphere via a deal with UK audiences.
ITV has lengthy been the topic of takeover hypothesis.
The newest got here from the Reuters information company earlier this yr when it reported early-stage talks with Abu Dhabi-backed group RedBird IMI a couple of potential merger of their respective manufacturing companies.
French media group Banijay was additionally reported to have held discussions a couple of potential provide for ITV’s studio enterprise or a full takeover.
Learn extra: Why a Sky-ITV deal makes sense in a shifting entertainment landscape
Dan Coatsworth, head of markets at AJ Bell, mentioned information of the strategy got here as a shock.
“Regardless of the success of ITVX, the media and leisure arm has acted like an anchor on the group.
“ITV’s newest outcomes present that advertisers nowadays desire to run promotions on digital platforms and never conventional ‘dwell’ TV. This has created issues for the broadcaster and meant that the historic income technology engine has develop into lopsided.
“ITV has flourished with its manufacturing arm, churning out hit TV exhibits and dramas which have entertained hundreds of thousands of individuals world wide. Streaming platforms are screaming out for brand new content material, and ITV Studios has been an essential cog within the wheel.
“Many traders would favor if ITV solely consisted of the Studios arm, and the prospect of a separation has fired up the share value”, he famous.
