British broadcaster ITV has announced it is engaged in preliminary discussions regarding the potential £1.6 billion sale of its media and entertainment arm to Sky, the owner of Sky News.
The Details of the Potential Deal
The talks, which were confirmed by ITV in a statement to the London Stock Exchange on Friday 7th November 2025, focus solely on the company's media and entertainment (M&E) division. This part of the business encompasses ITV's current broadcast operations and its portfolio of television channels, which are heavily reliant on advertising revenue.
Not included in the discussions is ITV's separate and highly successful studios arm, the production powerhouse behind global hits such as I'm A Celebrity... Get Me Out Of Here! This division remains under ITV's ownership for now.
Creating a Streaming Powerhouse
According to industry insights, the central motivation for the acquisition is the potential to forge a new, dominant force in the UK streaming market. By combining Sky's extensive resources and technological platform with ITV's popular broadcast channels and content, the deal aims to create a UK-focused streaming giant capable of competing more effectively in an increasingly crowded digital landscape.
ITV was careful to temper expectations, stating, "There can be no certainty as to the terms upon which any potential sale may be agreed or whether any transaction will take place." The company added that a further announcement would be made in due course if the situation develops.
A History of Speculation
This is not the first time ITV has been at the centre of takeover rumours. Earlier this year, Reuters news agency reported on early-stage talks between ITV and the Abu Dhabi-backed group RedBird IMI concerning a potential merger of their production businesses.
Furthermore, French media conglomerate Banijay was also reported to have held discussions about a possible offer for ITV's studio business or even a full takeover of the entire company. Sky has officially declined to comment on the current talks, which were first brought to light by Bloomberg News.
