ITV in ‘active’ talks with Sky over landmark £1.6 billion sale as it eyes World Cup boost

ITV has confirmed it remains in “active” discussions with Sky regarding a potential £1.6 billion sale of its broadcasting business, a move that could significantly reshape the UK’s television landscape.

The proposed deal would see the I’m A Celebrity… Get Me Out Of Here broadcaster divest its media and entertainment (M&E) division to the Comcast-owned rival, aiming to create a formidable streaming and broadcasting entity capable of competing with global giants like Netflix, Amazon, and Disney+ in the UK market.

However, the protracted nature of these negotiations, first revealed six months ago, has drawn comment from industry observers. One expert noted that discussions were “dragging on.”

ITV reiterated its position on Thursday, stating: “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.”

Reports suggest the deal could include a performance-based payout of up to £200 million.

The confirmation comes as ITV navigates a challenging advertising market, reporting a 2% year-on-year fall in total advertising revenues for the three months to March 31.

Its media and entertainment division saw revenues decline by 2% to £477 million, despite a 12% growth in digital revenues. In contrast, the ITV Studios production arm demonstrated resilience, notching up a 4% growth to £400 million.

The group anticipates a rebound, projecting total advertising revenues to rise by approximately 10% in the second quarter, leading to around 4% growth in the first half, with July’s performance expected to benefit from the men’s football World Cup.

Dame Carolyn McCall, ITV chief executive, expressed confidence in the company’s strategic direction. She stated: “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.”

Despite the ongoing uncertainty, shares in ITV saw a 3% uplift in morning trading on Thursday. Dan Coatsworth, head of markets at AJ Bell, commented on the prolonged negotiations, suggesting a potential “disagreement about price.”

He speculated on alternative outcomes should the Sky deal falter, noting: “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.”

Mr Coatsworth highlighted the value of the production arm, adding: “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.”

Crucially, the potential agreement with Sky would exclude ITV Studios, the acclaimed production house behind popular programmes such as I’m A Celebrity and the critically lauded drama Mr Bates vs The Post Office, which itself has been the subject of previous sale speculation.

A successful deal between Sky and ITV would mark a significant transformation for the UK television sector. It would enable Comcast, which acquired Rupert Murdoch’s Sky for £30 billion in 2018, to significantly expand its presence across the UK and Europe, while allowing FTSE 250-listed ITV to concentrate its efforts on its highly successful studio operations.