ITV has confirmed it is in early discussions to sell its television broadcasting business to Sky for around £1.6bn, in a potential deal that could dramatically alter the UK’s broadcasting landscape.
The talks centre on ITV’s Media and Entertainment division, which includes its flagship free-to-air channels and the ITVX streaming platform. The company’s production powerhouse, ITV Studios, is not part of the proposed sale.
The potential acquisition comes as traditional broadcasters face intense pressure from global streaming giants such as Netflix, Disney+ and Amazon Prime Video.
Sky deal seen as potential ‘rescue’ for traditional broadcasting
Sky, which is owned by US media giant Comcast, operates across television, broadband and mobile services, and already commands a major share of the UK market.
Media analyst Ian Whittaker said a merger between ITV and Sky would give the new entity control of more than 70% of the UK’s TV advertising market—a level that would normally attract scrutiny from regulators.
However, Whittaker added that given the dominance of streaming services, such a deal might be viewed differently. “This could almost be seen as a rescue deal for traditional TV,” he said.
Former ITV chair Sir Peter Bazalgette also told BBC Radio 4’s Today programme that the move “made sense” in light of the “huge pressure” broadcasters face from streaming competitors.
He argued regulators must redefine the TV advertising market, noting that platforms such as Google and Meta (Facebook) should now be considered the real competition, not rival TV networks.
Shifting habits and streaming pressures
Industry experts say the merger would reflect a wider trend of consolidation among European broadcasters struggling to retain viewership.
According to Ofcom, YouTube has already overtaken most UK broadcasters to become the second most-watched media platform in the country, behind only the BBC. Major live sporting events, once the lifeblood of traditional TV, are also increasingly shifting to streaming platforms.
Whittaker said: “While streaming growth has levelled off in the UK, competition from platforms like YouTube TV is adding a new layer of pressure.”
ITV Studios remains the company’s ‘crown jewel’
The deal would leave ITV Studios, which produces shows for platforms including the BBC, Netflix, and Amazon, outside of the sale. The division is behind hits such as Love Island, I’m a Celebrity… Get Me Out of Here!, and Alan Bates vs The Post Office.
Market analyst Dan Coatsworth from AJ Bell described ITV Studios as “the jewel in ITV’s crown,” calling the broadcast division a “ball and chain” by comparison.
ITV’s shares surged 15% to 78p after the news broke, though they remain far below the 2015 peak of 258p.
Coatsworth added: “Sky’s interest is Christmas come early for ITV’s management and shareholders. ITV Studios could now become an instant takeover target for global streamers hungry for fresh content.”
Ad revenues dip as ITV cuts costs
ITV has warned that its advertising revenue will be down 9% in the final quarter of 2025, as brands hold back spending ahead of the government’s Budget and potential tax rises.
The company also announced £35m in additional cost savings, which will delay the production of several programmes into next year.
