ITV in Preliminary Talks to Sell Television Business to Sky for £1.6 Billion

The UK’s broadcasting scene could see a major transformation as ITV confirmed it is in preliminary discussions to sell its Media and Entertainment division to Sky for £1.6 billion. The potential deal would unite two of Britain’s biggest TV players and reshape the traditional television market.

The proposed sale includes ITV’s free-to-air TV channels and its ITVX streaming platform, but excludes ITV Studios, the company’s renowned production arm responsible for global hits like Love Island and I’m a Celebrity… Get Me Out of Here!

A Strategic Move Amid Rising Streaming Competition

The talks come as the traditional TV industry faces mounting pressure from streaming giants such as Netflix, Disney+, and Amazon Prime Video. Analysts say a merger could be seen as a “rescue deal” for ITV, allowing it to stay competitive in a rapidly evolving digital landscape.

Media analyst Ian Whittaker told BBC’s Today programme that a merger between Sky and ITV would command over 70% of the UK’s TV advertising market — a level that would usually raise regulatory concerns. However, he added that with online competition increasing, regulators may see the move as necessary for survival.

Industry Voices and Market Reactions

Former ITV chair Sir Peter Bazalgette, who remains a shareholder, said the deal makes sense in the face of relentless competition from streaming platforms. He argued that regulators must “redefine the advertising market”, viewing tech giants like Google and Meta as the true rivals to traditional broadcasters.

Bazalgette also noted that “free-to-air channels across the world are not seen to have great value anymore”, predicting more consolidation among European broadcasters in the near future.

Following the announcement, ITV’s share price rose by 15% to 78p, although still far below its 2015 peak of 258p. Analysts described Sky’s interest as “Christmas come early” for ITV shareholders.

Sky’s Vision and Market Outlook

Owned by US-based Comcast, Sky has been expanding its media reach since its £30 billion acquisition in 2018. Comcast also owns NBCUniversal, which includes NBC, CNBC, DreamWorks Animation, and streaming service Peacock.

The proposed merger could create a powerhouse in British broadcasting, with enhanced access to content, technology, and audience reach. However, questions remain about how regulators will respond to such a dominant market share.

Meanwhile, ITV Studios continues to thrive, producing content for major networks and streamers like Netflix, Amazon, and the BBC. Industry observers believe that ITV Studios could soon become a prime takeover target for global streaming platforms seeking to expand content production.

Financial Pressures Ahead

ITV also announced that its advertising revenue is forecast to drop by 9% in the final quarter of 2025, citing advertiser caution ahead of potential tax rises. The broadcaster plans an additional £35 million in cost savings, which will delay the release of several programmes until 2026.

As the media landscape continues to evolve, the potential Sky-ITV deal could mark a defining moment for the future of British television.