Faarea MasudBusiness reporter
Alamy
ITV has said it is in “preliminary” discussions to sell its broadcasting business to Sky for £1.6bn, a move that could reshape the UK’s television landscape.
The talks focus on ITV’s Media and Entertainment division, which includes its free-to-air TV channels as well as the ITV X streaming service.
The discussions with Sky, which is owned by US-based Comcast, come as the television industry faces fierce competition from streaming services such as Netflix and Disney+.
The deal would not include ITV’s production arm – ITV Studios – which makes popular programmes such as Love Island and I’m a Celebrity… Get Me Out of Here.
However, one analyst said the broadcaster could lose those shows if the deal goes through as the channel would have to bid alongside rival companies for the contracts, despite ITV being the biggest customer at present.
Tom Harrington, from Enders Analysis, said: “It would be unlikely for current shows to leave ITV as there will already be agreements in place.”
But splitting the two businesses could make it less likely for new shows to appear on ITV, he added.
Comcast, which owns Universal Studios, bought Rupert Murdoch’s Sky in 2018 and is a major player in the US media sector.
It owns NBCUniversal, which contains the NBC and CNBC channels, DreamWorks Animation and streaming service Peacock.
Media analyst Ian Whittaker told the BBC’s Today programme that a combination of Sky and ITV would mean they had “70% plus” of the UK TV advertising market, which he said “in normal circumstances” would be rejected by regulators because of the dominance it would give t
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