Comcast, owner of Sky and NBC, is in advanced talks with ITV over the sale of ITV’s media and entertainment business. Any deal would see ITV split into two.
- ITV confirms discussions to sell its broadcast channels to Comcast for £1.6bn.
- ITV Studios to continue as separate business
- Any deal expected to face scrutiny from regulators
ITV has issued a Friday morning statement to investors confirming it is in talks with Comcast regarding a possible sale of its traditional broadcast business for an enterprise value of £1.6bn.
Any deal would include the flagship ITV1 channel, alongside its newer digital channels ITV2, ITV3, ITV4 and ITV Quiz.
Excluded from the talks is ITV’s programme production business ITV Studios, the home of shows including I’m A Celebrity, Come Dine With Me and Mr Bates versus the Post Office. ITV Studios has been the subject of different takeover talks. The production business, which has origins in ITV’s former regionalised programme making operations, has benefited from making shows for other broadcasters internationally, as well as receiving commissions from streaming services.
READ MORE: From ITN to Freeview: How ITV-Comcast deal could trigger major changes
“No certainty”
ITV told investors that “there can be no certainty as to the terms upon which any potential sale may be agreed or whether any transaction will take place.” ITV says it will offer a further announcement “in due course if appropriate”.
Any deal will almost certainly lead to substantial regulatory scrutiny from Ofcom and the Competition and Markets Authority due to concerns over media plurality and market dominance.
Analysts suggest the acquisition could lead to greater investment in UK programming. However, it’s likely to also raise questions about editorial independence and the future of public service broadcasting.
Through ITV, Comcast would also gain a shareholding in a rival to Sky: ITV has a shareholding in Everyone TV, the organisation responsible for the management and promotion of free-to-air TV platforms including Freeview and Freely.
Comcast would also gain ITV’s 40% stake of ITN.
By: Marc Thornham | Image: ITV | This article replaces an earlier version now that ITV has confirmed speculation