ITV has revealed it is in talks with Comcast and Sky to sell its media and entertainment division for $2.1 billion.
“[ITV] notes recent speculation in the press and confirms that it is in preliminary discussions regarding a possible sale of its M&E business to Sky for an enterprise value of £1.6 billion,” the British network said in a statement on Friday. “There can be no certainty as to the terms on which a potential sale can be agreed or whether a transaction will take place. A further announcement will be made in due course if necessary.
The deal would include ITV’s linear channels and its ITVX streaming platform. The Channel 3 brand is also home to ITV Studios, famous for producing shows like ‘Coronation Street’, ‘This Morning’ and ‘Love Island’.
Meanwhile, on Thursday, the UK network announced it planned to cut costs by $45.7m (£35m) with a “reduction in discretionary spending” and a “reduction in marketing spend aligned with the adjusted content slate”.
“UK macroeconomic data shows a slowing economy, with increased uncertainty ahead of the UK budget, impacting the wider advertising market, and we are adjusting our costs to match this current reduction in demand,” ITV CEO Carolyn McCall said on a third-quarter earnings conference call. “We do not anticipate that these temporary savings will impact our ability to achieve our strategic plan.”
These new international negotiations also come seven years after Comcast bought Sky for around $39 billion (£30 billion).
ITV shares rose 15-19% on Friday morning following the news.
