ITV has confirmed it is in talks with Sky’s parent company over a potential sale.
Speculation that Comcast was preparing a bid for the UK’s biggest commercial broadcaster began overnight, with ITV confirming the news this morning.
In a statement released to the stock exchange, ITV said that it “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 £1.6 billion.
“There can be no certainty as to the terms upon which any potential sale may be agreed or whether any transaction will take place,” added the statement. “A further announcement will be made in due course if appropriate.”
The talks are focusing on ITV’s Media and Entertainment division, which includes its TV channels as well as streaming service, ITVX.
According to Sky News, the approach centres on the potential creation of a UK-focused streaming giant.
According to media analyst Paolo Pescatore, the plan “defies logic, given that Sky has been the dominant UK pay-TV market leader, with an extensive broadcast operation. It really doesn’t need to buy ITV.
“Given the significant overlap of assets, receiving the necessary approvals will be no easy feat,” he told TVBEurope. “However, in the interests of UK plc and to save ITV, it might be waved through.”
Pescatore went on to say the potential deal would be a reversal of what is currently happening in the US, with traditional media giants like Comcast, Paramount, and Warner Bros. Discovery all seeking to offload their legacy operations.
“All roads lead to delivery via the internet. The landscape is changing rapidly and will continue to do so. This could be an opportunity for Sky to feature more prominently in the free-to-air space as part of a new lineup in the streaming world.”
