ITV has confirmed it remains in “active” talks with Sky over a potential £1.6 billion sale of its broadcasting business to the Comcast-owned rival. The broadcaster, known for shows like I’m A Celebrity… Get Me Out Of Here, is reportedly close to finalising a deal to sell its media and entertainment (M&E) division to Sky. This move would create a broadcaster and streamer capable of competing with global giants such as Netflix, Amazon, and Disney+ in the UK.
However, the discussions were first revealed six months ago, and one expert has described them as “dragging on.” ITV stated on Thursday: “Following our announcement in November 2025, we remain in active discussions with Sky regarding a possible sale of the M&E business. We will update the market in due course.” The two parties are reportedly structuring the deal to include a payout of up to around £200 million, contingent on future performance.
This update comes as ITV reported a 2% decline in total advertising revenues year-on-year for the three months ending March 31. Its media and entertainment division saw revenues fall 2% to £477 million, despite a 12% increase in digital revenues. In contrast, the ITV Studios production arm achieved 4% growth, reaching £400 million. The group expects total advertising revenues for ITV to rise by approximately 10% in the second quarter, leading to overall growth of about 4% in the first half of the year. ITV is also hopeful that July’s performance will be boosted by the men’s football World Cup tournament.
Dame Carolyn McCall, ITV chief executive, commented: “Our strategic priorities of expanding ITV Studios and supercharging our digital media and entertainment business continue to deliver clear and positive results.” She added: “We expect total advertising revenues to be up around 10% in the second quarter and a strong July, driven by significant demand from advertisers around the men’s football World Cup. While we are monitoring the ongoing difficult geopolitical environment, we are focused on what we can control and remain on track to deliver our full-year guidance of good revenue growth in ITV Studios and strong profitable digital revenue growth in M&E.”
Shares in ITV rose 3% in morning trading on Thursday. Dan Coatsworth, head of markets at AJ Bell, noted that talks with Sky were “dragging on,” possibly due to a “disagreement about price.” He added: “If Sky can’t get a deal over the line, other potential suitors might include European broadcasters such as TF1 looking to expand their reach. Alternatively, private equity might want the whole of ITV and then look to break it up. The jewel in the crown is the Studios arm, which could be worth a lot more as a standalone entity than part of a media conglomerate.”
The potential deal with Sky would not include ITV Studios, which produces shows such as I’m A Celebrity and the popular drama Mr Bates vs The Post Office, itself the subject of previous sale speculation. A deal between Sky and ITV would be transformative for the UK television sector. It would see Comcast, which acquired Rupert Murdoch’s Sky for £30 billion in 2018, expand its footprint in the UK and Europe, leaving FTSE 250-listed ITV focused solely on its studio operations.
