ITV has acknowledged ongoing preliminary discussions with Sky concerning the potential sale of its Media and Entertainment (M&E) segment. The prospective deal values the M&E business at £1.6 billion and would result in the separation of the company's broadcasting and studios operations.
"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 broadcaster stated officially. "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."
If the acquisition proceeds successfully, it is expected to significantly alter the UK broadcasting market. In its recently released financial results, ITV disclosed plans for a temporary budget reduction of £35 million in anticipation of the upcoming Budget later this month. The company is currently grappling with a projected 9% decrease in advertising revenues during the critical pre-Christmas period.