Comcast, the US media giant that owns Sky, is in discussions to acquire ITV's broadcasting business for approximately £2bn. The deal would include ITV's television channels and streaming service ITVX but exclude its production arm, ITV Studios, which has been the subject of separate takeover talks.
The potential acquisition marks a significant shift in the UK television landscape, coming nearly two decades after James Murdoch's audacious move to become ITV's largest shareholder. Sky was later forced by regulators to sell its stake in ITV.
ITV's value has plummeted to £2.5bn, about 75% below its peak a decade ago, as streaming services like Netflix have disrupted traditional broadcasting. The company recently announced a temporary £35m budget cut due to a poor macroeconomic environment and advertiser uncertainty ahead of the UK budget.
ITV expects advertising revenues, which still constitute most of its income, to fall by 9% in the crucial fourth-quarter period leading up to Christmas. The broadcaster is being advised by investment banks Robey Warshaw and Morgan Stanley.
Comcast, which bought Sky for £30bn in 2018, has since written down the value of its European operations by billions of dollars, largely due to underperformance in Italy and Germany. However, Sky UK remains highly profitable, holding rights to major assets such as the Premier League.
