ITV confirms skyrocketing over £1.6bn in sales of TV channels and ITVX in global broadcasting
ITV has confirmed that it is talking about a £1.6 billion sale of its entertainment business, including its traditional TV channels and its broadcast platform ITVX, in a move that could redefine the future of British broadcasting.
The broadcaster said this morning in an ‘initial interview’ with Sky’s US parent company, Comcast, following widespread speculation earlier this week about the week.
“ITV PLC sets out the latest news and confirms that it is in preliminary discussions regarding the sale of its M&E business to Sky City.
The talks mark one of the most significant crises in UK media in a decade. If completed, the sale would see Sky Take over ITV’s flagship channels and its ITVX service, consolidating its dominance in both the traditional and political television markets.
The deal would transform ITV into a pure-play production and content studio, focusing on its successful ARTS arm Global ARM ITV Studios, which makes ITV’s hit shows, I’m a celebrity…get me out of here! and line of work.
Analysts say that such a shift could reflect a broader industry trend, with traditional broadcasters returning to traditional broadcasts that line up broadcast production limited to content production and licensing fees.
The talks come as ITV battled down a sharp awturn in revenue, driven by weak consumer confidence and business caution ahead of Chancellor Rachel Reeves’ 26 November budget.
CEO Carolyn McCall said on Thursday there was evidence of a “softening” economy, with advertisers taking advantage of tax revenue.
“Uncertainty has increased in the lead-up to the budget, which is impacting the difficult advertising market,” he said, adding that ITV could delay several major programs into 2026 to save money.
The share price of ITV has fallen strongly this year, compounded by the decision of the US Liberty Global media brokers to stop its stake from 10% to 5% on 5 October. The group is now expected to exit completely by the end of the year.
Media analysts said any merger of ITV’s over-the-air assets would face intense scrutiny from both the Competition and Markets Authority (CMA).
While the agreement could strengthen Britain’s Media Ecosystem against us to broadcast giants such as Netflix, Amazon Prime Video and Disney +, the regulators would worry about the control of the distribution of the sky over the channels of the distribution of the sky.
“This could be a game changer for UK broadcasting,” said one media analyst in an analysis of Enders. “If it happens, the sky can rule with the success of the Pay-TV regime and Free-to-air – it’s a strategic edge but it’s a regulatory control.”
For ITV, the sale of its broadcasting arm could represent the end of an era for the classic British commercial network. It will also raise questions about the future of its public responsibilities, including regional issues and accessibility needs.
However, investors are likely to welcome a cash injection that can be arranged through investment returns and international expansion through ITV Studios, now the company’s biggest profit engine.
If agreed, the deal would be among the biggest media deals since Comecast’s £30bn Thatch of Sky in 2018 – and the world’s most evolved British Television.
