ITV in talks to sell television business to Sky for close to £1.6 billion

British broadcaster ITV plc has confirmed that it is in early-stage discussions with Sky Group, the UK-based pay-TV and streaming company owned by Comcast, over a potential sale of its television broadcasting arm. 

The talks, which remain preliminary, reportedly value the business at around £1.6 billion (approximately US $2.1 billion), including debt. ITV said there was “no certainty” that any deal would be finalised or agreed upon.

The sale under discussion would include ITV’s network of free-to-air channels and the ITVX streaming platform, which together form the company’s media and entertainment division. 

However, the deal would not cover ITV Studios, the broadcaster’s content-production business and one of Europe’s largest independent producers. ITV has made clear that its production arm will remain a core growth driver even as it evaluates options for its advertising-dependent broadcast operations.

The rationale behind the move appears to be rooted in shifting market dynamics. ITV’s media business has been hit by a soft advertising environment, tightening margins, and fierce competition from global streaming platforms such as Netflix, Amazon Prime Video and Disney+. 

In its most recent half-year results, ITV reported that revenue from its broadcast and streaming operations fell to roughly £955 million, with profits shrinking to £35 million, reflecting the growing strain on traditional television. Selling the division could allow ITV to focus on scaling its studio operations and global content partnerships, areas that have shown stronger profitability and resilience.

If completed, the transaction would mark one of the most significant restructurings in the UK media landscape in over a decade. A deal between ITV and Sky would combine the country’s largest commercial broadcaster with one of its most powerful pay-TV and streaming distributors, creating a formidable player in both content delivery and audience reach. Analysts say such a merger could reshape advertising markets, giving Sky unprecedented scale and leverage in negotiations with media buyers.

However, the move is almost certain to draw regulatory scrutiny. The UK’s Competition and Markets Authority (CMA) and broadcast regulator Ofcom are expected to review the transaction closely to assess its impact on competition and diversity within the British media sector. A Sky-ITV merger could raise questions over market dominance, advertising rates and content access, particularly given Sky’s existing share of pay-TV households and advertising inventory.

The market reaction to the news was immediate. ITV shares surged more than 15 per cent in early trading following reports of the discussions, as investors welcomed the prospect of a deal that could unlock value from the company’s struggling media division. Market watchers said the valuation of around £1.6 billion was lower than ITV’s total market capitalisation but could be attractive given current revenue performance and strategic headwinds.

Sky, for its part, appears keen to consolidate its presence in free-to-air broadcasting and expand its streaming ecosystem in the UK and Europe.