ITV has confirmed overnight reports that it’s in preliminary talks to sell its broadcast business, which includes the flagship ITV channel and ITVX streaming service, to Sky in a deal valued at £1.6bn.
In addition to its broadcast business, the firm owns ITV Studios which produces shows for its own channels as well as UK and international outlets including the BBC, Netflix and Apple TV. This business would not be included in the deal.
The firm’s shares have long been seen as under-valued, with some analysts previously saying the ITV Studios business alone should be worth more than the combined group’s current value.
A possible takeover of ITV or the sale of one or other of its divisions is the subject frequent speculation.
Sky is owned by US media giant Comcast which also owns Universal Studios.
In its statement, ITV says: “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.”