ITV in talks to sell broadcasting business to Sky in £1.6bn deal

ITV has confirmed it is in talks with Sky over the possible a sale of its broadcasting arm worth £1.6bn.

The group, which is behind hit shows such as I’m a Celebrity… Get Me Out Of Here! and Love Island, said there was no certainty over the terms of any possible sale of its media and entertainment division.

It said a further announcement will be made “in due course if appropriate”.

In a statement to the London Stock Exchange, ITV said: “ITV plc (”ITV”) notes the recent press speculation and confirms that it is in preliminary discussions regarding a possible sale of its M&E business to Sky for an enterprise value of £1.6bn.

“There can be no certainty as to the terms upon which any potential sale may be agreed or whether any transaction will take place. A further announcement will be made in due course if appropriate.”

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The announcement, called a “response to recent speculation”, comes after reports late on Thursday that Sky owner Comcast was holding discussions with ITV over a possible deal to buy its media and entertainment arm.

This would include the public service broadcaster’s terrestrial TV channels and streaming service ITVX.

But the sale would not include ITV’s production arm, ITV Studios, which makes shows including I’m a Celebrity and the popular drama Mr Bates vs The Post Office, which has also been the subject of previous sale speculation.

The news comes after ITV said it will delay some programmes into the new year and implement cost cuts, citing a significant hit to advertising revenue ahead of the upcoming Budget.

The group anticipates a 9 per cent decline in total advertising income this quarter, attributed to widespread business caution before the November Budget.

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An ITV statement highlighted: “The economic outlook in the UK remains uncertain with widespread caution being exercised across business sectors ahead of the Budget in November.

“This is impacting demand for advertising throughout the industry in the fourth quarter.”

ITV, repeatedly stepping up cost-cutting targets, announced an additional £35m in "temporary" savings.

These will focus on its media and entertainment division, with £20m saved by postponing certain programmes and a further £15m from trimming marketing spend.

No key programmes are expected to be impacted by the delays, nor are any job losses foreseen as a direct result of this latest cost-saving drive, the company assured.