ITV plc has confirmed that it is in preliminary discussions to sell its media and entertainment (M&E) business to Sky for 拢1.6 billion.
The strategy focuses on building a UK-based streaming giant but excludes ITV鈥檚 production arm.聽
This division covers the company鈥檚 existing broadcast channels and operations, which rely heavily on advertising revenue.
The talks come as ITV reported a solid third-quarter performance, with results ahead of market expectations despite a softer advertising market.
Total group revenue rose 2% year to date to 拢2.8bn, driven by strong growth at ITV Studios (up 11%) and digital advertising (up 15%) through the continued success of streaming platform ITVX.
Advertising remained resilient, with total advertising revenue flat in Q3 and down 5% year to date, following a strong 2024 comparison boosted by the men鈥檚 Euros.聽
The business expects advertising to fall around 9% in Q4 amid wider economic uncertainty ahead of the UK Budget, but has identified 拢35 million of temporary savings to offset the softer demand.
The company said it remains on track to meet its full-year targets, including at least 拢750m in digital revenues by 2026.
Sky, which is owned by US giant Comcast, becomes the latest in a string of businesses to explore an acquisition of ITV.聽
The news follows Liberty Global鈥檚 decision last month to sell roughly half of its long-held 10% stake in the broadcaster.
Liberty, founded by billionare John Malone, sold around 191m shares worth approximately 拢140m, cutting its holding to about 5%, which sent ITV鈥檚 share price sharply lower at the time.
However, this morning鈥檚 news has had the opposite effect, with shares in the group having risen by over 15% within the first hour of trading to 78.31p.聽
The FTSE 250 company is up by nearly 6% so far in 2025 and has a market cap of just under 拢3bn.
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