Talks between Sky, owned by Comcast, and ITV about a prospective £1.6 billion ($2.18 billion) purchase of ITV’s broadcast channels and streaming platform have eased off in recent weeks, according to people familiar with the negotiations. The discussions, first confirmed by ITV in November as aimed at selling its Media and Entertainment unit to Sky, were designed to merge content and distribution to establish one of the three largest streaming services in the UK market.
The proposed transaction would combine ITV’s linear channels and its streaming operations with Sky’s distribution footprint and content library, positioning the combined service to vie with global giants such as Netflix, YouTube, Amazon Prime Video and Disney+. However, momentum has slowed as engagement from Comcast’s headquarters in Philadelphia has diminished. "They have slowed in recent weeks," one source said about the negotiations.
Part of the drag on progress stems from the operational challenge of separating ITV Studios from the rest of the broadcaster. ITV Studios produces many of the network’s flagship programs, and spinning it out presents structural and logistical complications that parties must resolve before any deal can advance.
Compounding that internal complexity is the distraction across the industry caused by the acquisition battle for Warner Bros Discovery. That wider contest has consumed attention and resources across media companies, contributing to the reduced pace of these particular talks.
For now, the combination of the ITV Studios separation issue and the market-wide disruption linked to the Warner Bros Discovery fight has lowered the immediacy of the Sky-ITV negotiations. Participants in the process appear to be taking more time to address the structural questions and to monitor how the broader industry developments unfold.
Clear summary
Sky and ITV’s talks over a £1.6 billion deal to transfer ITV’s broadcast channels and streaming platform to Sky have slowed. ITV confirmed in November it was exploring a sale of its Media and Entertainment unit to Sky, with the goal of creating one of the UK’s top three streaming services. Reduced engagement from Comcast’s Philadelphia headquarters, complications around spinning out ITV Studios, and industry disruption tied to the Warner Bros Discovery acquisition contest have all contributed to the slowdown.
Key points
- Discussions over a £1.6 billion acquisition of ITV’s broadcast channels and streaming platform by Sky have decelerated in recent weeks.
- The deal was announced by ITV in November as a potential sale of its Media and Entertainment unit, intended to form a top-three UK streaming service to compete with major global platforms.
- Reduced engagement from Comcast’s Philadelphia headquarters and operational difficulties related to separating ITV Studios are central factors in the slowdown; broader industry disruption from the Warner Bros Discovery battle has also impeded momentum.
Sectors impacted - media, streaming, broadcasting, entertainment
Risks and uncertainties
- Operational risk - the complexity of spinning out ITV Studios could delay or complicate any transaction and affect integration plans for broadcasting and streaming operations (impacting media and production sectors).
- Resource and attention risk - the ongoing acquisition battle for Warner Bros Discovery is creating industry-wide disruption that has diverted focus and may delay strategic deals across media companies (impacting streaming and broadcast sectors).
- Engagement risk - diminished involvement from Comcast’s Philadelphia headquarters has reduced negotiation momentum, introducing uncertainty around timing and likelihood of a completed deal (impacting corporate buyers and the broader media M&A pipeline).