ITV has confirmed that 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 said to be close to finalising a deal to sell its media and entertainment (M&E) division, a move that would create a broadcaster and streamer to rival Netflix, Amazon, and Disney+ in the UK.
Deal Structure and Performance-Based Payout
According to reports, the pair are looking to structure the deal to include a payout of up to around £200 million based on future performance. 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.”
Financial Performance and Advertising Revenues
The announcement comes as ITV reported a 2% fall in total advertising revenues year-on-year in the three months to March 31. Its media and entertainment division saw revenues fall 2% to £477 million despite 12% growth in digital revenues. However, its ITV Studios production arm achieved 4% growth to £400 million. The group expects total advertising revenues for ITV to rise by around 10% in the second quarter, leading to growth of about 4% in the first half as a whole. ITV is also hoping for a boost from the World Cup football tournament in July.
CEO Comments and Future Outlook
Dame Carolyn McCall, ITV chief executive, said: “Our strategic priorities of expanding ITV Studios and supercharging our digital Media & 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.”
