Sky makes a $2.1 billion bid for ITV’s Networks Arm
British broadcaster ITV has confirmed it has received a £1.6 billion ($2.1 billion) bid from Comcast’s pay-TV platform Sky for its media and entertainment unit.
The shocking news – which arrived in Britain overnight – would see Comcast take control of ITV’s linear channels and ITVX streaming businesses, significantly expanding its position in the British TV landscape, having already acquired Sky for around $30 billion in 2018. According to news reports, Sky’s bid focuses on the potential creation of a UK-focused streaming giant.
In a brief statement sent on Friday morning, ITV said it has “noted recent press speculation and confirms that it is in preliminary discussions regarding a potential sale of its M&E business to Sky for an enterprise value of £1.6 billion.”
It added: “There can be no certainty as to the terms on which a potential sale may be agreed or whether a transaction will occur. If necessary, a further announcement will be made in due course.”
The discussions do not include ITV’s production and sales arm, ITV Studios, which makes shows such as ‘Love Island’, ‘I’m a Celebrity’ and the drama ‘Mr Bates vs The Post Office’ and has been at the center of numerous recent takeover rumors. RedBird IMI and Banijay are said to have shown interest in the unit.
Confirmation of the deal talks came shortly after ITV reported it would “temporarily” cut $46 million from its budgets due to Britain’s “weakening economy” and advertiser uncertainty. The company expects advertising revenue to fall 9% in the key period of the fourth quarter, in the run-up to Christmas.
ITV shares rose 18% in early trading in London on Friday following news of a possible deal with Sky.
