ITV confirms it is in talks to sell its broadcasting arm
Newsflash: ITV has confirmed that it is in talks about the posssible sale of its media and entertainment operations to rival Sky.
In a statement to the City this morning, ITV says:
ITV plc notes 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.
The statement comes hours after reports that Comcast, the parent company of Sky, was in talks to buy ITV’s broadcasting business, a move that would upend the British television landscape.
ITV cautions that a sale isn’t certain, telling the City this morning:
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.
News of the possible deal came shortly after ITV reported that it would “temporarily” cut £35m from its budgets as it deals the poor macroeconomic environment and advertiser uncertainty ahead of the budget later this month.
The company said it expected advertising revenues, which still account for most of its income, to fall by 9% in the key fourth-quarter advertising period in the run-up to Christmas.
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The Dow Jones industrial average, of 30 large US companies, has dropped by 209 points, or 0.45%, in early trading to 46,703 points.
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The broader S&P 500 index is down 0.6%, and the tech-focused Nasdaq has lost almost 1%.
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Fawad Razaqzada, market analyst at City Index, says:
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“Risk appetite continued to weaken Friday morning as European stocks and US futures resumed their slide after a brief bout of dip-buying faded – the sort of price action we have been accustomed to all week really.
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Some analysts warn that this year’s artificial-intelligence-led rally has finally come to a halt, while others suggest markets needed to cool down anyway with indices racing to record highs without much pause and new stimulus.”
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This has been a tricky week for the markets – the S&P 500 and the Dow are both set for their steepest weekly loss in four, while the Nasdaq is poised for its worst weekly performance since March, Reuters…
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