ITV has confirmed it is negotiating with Sky over a deal to sell its broadcast and streaming business to the pay-TV giant, as a report suggests the deal is imminent.
In its Q1 trading update the PSB said it is engaged in “active discussions” with Sky and would “update the market in due course”, having first confirmed preliminary discussions over a £1.6bn deal in November.
It comes after a Reuters report said Comcast-owned Sky is advancing towards a deal for ITV’s media and entertainment business (M&E), stating the transaction will include a payout dependent on the broadcaster’s performance.
Citing three sources close to the situation, it said the deal would see a portion of the compensation paid by Sky will be contingent on the future performance of the business, with the earn-out portion amounting approximately £200m.
It also said the transaction, should it go ahead, would include ITV Studios gaining the rights to some Sky TV series, bolstering its scripted portfolio. Reuters said ITVS would be “buying a production unit” of Sky that “holds the rights to a number of TV series”, although it is not clear what production business this refers to.
ITV and Sky both declined to comment when approached by Broadcast.
ITVS revenues grow
In Q1 of 2026, ITV’s total external revenue increased by 1% with ITV Studios and digital revenue growth offsetting the declining in linear advertising, which declined 1.5% in Q1.
While group total revenue was flat year-on-year, ITVS’s revenue was up 4%, spurred by an 8% uptick in external revenues thanks to delivering major shows for global streamers Skyscraper Live for Netflix and the second series of drama Rivals on Disney+.
Meanwhile, M&E revenue was down by 2% in the opening quarter of this year, posting £477m in revenue for Q1. This was due to non-advertising revenues dipping by 8% as expected, however it was supported by a 12% growth in digital revenue largely offsetting the decline in linear advertising. ITVX also boosted its total streaming hours by 13% in Q1.
Carolyn McCall, ITV’s chief executive said the broadcaster “maintained good momentum in the first quarter of 2026, delivering results in line with expectations.
“Our strategic priorities of expanding ITV Studios and supercharging our digital Media & Entertainment business continue to deliver clear and positive results,” she said.
“While we are monitoring the ongoing difficult geopolitical environment, we are focused on what we can control and remain on track to deliver our full year guidance of good revenue growth in ITV Studios and strong profitable digital revenue growth in M&E.”
This story first appeared on Screen’s sister site Broadcast
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