ITV in talks to sell media and entertainment arm to Sky for £1.6bn
Partners Juliane Althoff and Giao Pacey comment on the news that ITV is in 'preliminary' talks to sell its media and entertainment arm to Sky for £1.6bn, in The Guardian, The Telegraph, Variety, Law360 and Broadband TV News.
Partner Juliane Althoff commented:
"A sale of ITV’s media and entertainment arm to Sky would be anything but straightforward, not least because ITV’s entertainment arm forms a huge part of its public service broadcasting identity.
"If this deal were to proceed, it would represent a seismic shift in the UK's broadcasting landscape and could fundamentally reshape how British audiences access homegrown content. It would raise complex regulatory and policy questions and require close scrutiny by Ofcom and the Competition Markets Authority to ensure continued variety given Sky’s existing market presence in the pay-tv sector.
"There are countless legal and commercial issues to consider: existing talent contracts, rights chains and content licensing and any potential change of control triggers, to name just a few. These are all compounded by the involvement of third-party producers and cross-border financing structures, all of which would require careful negotiation."
Partner Giao Pacey commented:
"ITV’s proposed £1.6 billion sale of its Media & Entertainment division to Sky could mark a turning point for British television. It’s not just a divestment, it’s a sign that UK broadcasters are rethinking how they operate in a fast-moving media landscape. By offloading its traditional TV channels and streaming service ITVX, ITV is aiming to reduce its reliance on advertising, which can be unpredictable, and instead focus on producing content it can sell globally.
"Other broadcasters are taking different approaches. Rather than selling off parts of their business, the BBC, Channel 4, Channel 5 (and ITV itself) are teaming up on projects like Freely, a joint streaming platform, and a shared advertising marketplace. These collaborations are designed to help traditional broadcasters stay competitive without merging or giving up control. Meanwhile, global players like Netflix and Amazon Prime continue to invest heavily in original content and international growth, putting pressure on UK broadcasters to adapt.
"The market seems to support ITV’s strategy. The sharp rise in ITV’s share price signals investor approval of the company’s strategic shift. For institutional stakeholders, the proposed sale offers a clearer and more focused investment narrative: a leaner ITV, streamlined around its content production business, with less exposure to the volatility of advertising-driven revenues."
Juliane's comments were published in The Guardian and The Telegraph, and Giao's in Variety and Broadband TV News, 7 November 2025. Both sets were published in Law360, 7 November 2025.
