Copyright Deadline
UK network has confirmed it is talks with Sky owner Comcast over a £1.6B ($2.1B) sale of its Media & Entertainment business. News of the potential deal emerged overnight, with Comcast hoping to add the main ITV network, its suite of linear channels and the ITVX streaming business. In a statement to the stock exchange this morning, ITV said it “notes the recent press speculation and confirms that it is in preliminary discussions regarding a possible sale of its M&E business to Sky for an enterprise value of £1.6B. “There can be no certainty as to the terms upon which any potential sale may be agreed or whether any transaction will take place. A further announcement will be made in due course if appropriate.” A deal would form a hugely powerful UK broadcasting business, as Comcast already owns pay-TV giant Sky and a suite of production companies, such as Carnival through NBCUniversal. Notably, the statement points to Sky as the buyer, not its parent. We understand Comcast isn’t the only major U.S. studio to have explored a deal for ITV’s broadcasting arm, which yesterday warned it was seeking to make additional cost savings at the M&E business amid a “softening” British economy. The TV advertising downturn has hugely hurt all of Europe’s major commercial broadcasters and most have looked to new revenue streams to hold up their value. ITV’s production and sales wing, ITV Studios, has been the subject of its own takeover talk, with the likes of All3Media parent RedBird IMI and Banijay among those known to have kicked the tyres.
