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itv has confirmed that it is in talks with Sky over the possible sale of its broadcasting arm. Value £1.6 billion.
The group behind hit shows like I’m a Celebrity…Get Me Out of Here! And Love Island said it has no certainty over the terms of any potential sale Media and Entertainment Division.
It added that a further announcement would be made “if appropriate, at an appropriate time”.
In a statement to the London Stock Exchange, ITV said: “ITV plc (“ITV”) notes recent press speculation and confirms that it is in preliminary discussions regarding the potential sale of its M&E business to Sky at an enterprise value of £1.6 billion.
“There can be no certainty as to what terms any potential sale may be agreed to or whether a transaction will occur at all. Further announcements will be made in due course when appropriate.”
The announcement, said to be a ‘response to recent speculation’, comes after reports late on Thursday that Sky boss Comcast was discussing a potential deal with ITV to buy its media and entertainment arm.
It will include the public service broadcaster’s terrestrial TV channels and streaming service ITVX.
But the sale will not include ITV’s production arm, ITV Studios, which produces shows including I’m a Celebrity and popular drama Mr Bates vs The Post Office, which has also been the subject of previous sale speculation.
The news comes as ITV said it would delay some programs in the new year and implement cost cuts, which will have a significant impact on upcoming advertising revenues. Budget,
The group expects a 9 per cent decline in total advertising revenue in the quarter due to widespread business caution ahead of November Budget,
One itv The statement highlighted: “The economic outlook in the UK remains uncertain and widespread caution is being taken across all business sectors ahead of Budget in November.
“This is impacting advertising demand across the industry in the fourth quarter.”
itvAnnounced an extra £35 million in “temporary” savings, while repeatedly raising cost-cutting targets.
These will focus on its media and entertainment division, with £20 million being saved by postponing some programs and a further £15 million being saved by cutting marketing spend.
The company assured that the delay is not expected to impact any major programs, nor are any job losses likely to occur as a direct result of this latest cost-saving campaign.