Sky Makes $2.1 Billion Bid for ITV’s Networks Arm

U.Okay. broadcaster ITV has confirmed it has obtained a £1.6 billion ($2.1 billion) bid from Comcast’s European pay-TV platform Sky for it media and leisure unit.

The shock news — which landed in a single day in the U.Okay. — would see Comcast take management of ITV’s linear channels and ITVX streaming enterprise, considerably increasing its foothold in the British TV panorama, having already acquired Sky for round $30 billion in 2018. According to news studies, the bid from Sky facilities on the potential creation of a U.Okay.-focused streaming large.

In a brief assertion despatched Friday morning, ITV said it famous “the recent press speculation and confirms that it is in preliminary discussions regarding a possible sale of its M&E business to Sky for an enterprise value of £1.6bn.”

It added: “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.”

The discussions don’t embody ITV’s manufacturing and sales arm, ITV Studios, which makes exhibits including “Love Island,” “I’m a Celebrity” and the drama “Mr Bates vs The Post Office” and has been the middle of quite a few latest takeover rumours. RedBird IMI and Banijay are understood to have expressed an curiosity in the unit.

Confirmation of the deal talks got here shortly after ITV reported that it could “temporarily” shave $46 million from its budgets over the U.Okay.’s “softening economy” and advertiser uncertainty. It said it anticipated advert revenues to fall by 9% in the key fourth-quarter interval in the lead as much as Christmas.

ITV shares jumped 18% at the start of buying and selling in London on Friday following news of a possible cope with Sky.