Sky owner Comcast in talks to buy ITV's broadcasting arm for 2bn

"The parent company of Sky is in talks to buy ITV's broadcasting business for about 2bn, two decades after James Murdoch made an audacious move to become the biggest shareholder in the UK's largest commercial free-to-air broadcaster. The US media company Comcast, which owns assets including Universal Studios and bought Rupert Murdoch's Sky for 30bn in 2018, is in talks to buy ITV's broadcasting arm, which includes its TV channels and streaming service ITVX."

"Sky, which took the stake to block a move by Richard Branson to buy ITV after the cable companies NTL and Telewest merged to create Virgin Media, was ultimately forced by regulators to sell its holding. ITV's largest single shareholder, Liberty Global, which jointly owns Virgin Media O2 with Spanish telecoms operator Telefonica, halved its 10% stake in ITV last month."

"On Thursday, 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. ITV is being advised by the banks Robey Warshaw and Morgan Stanley."

Comcast is pursuing a purchase of ITV's broadcasting arm for about 2bn, which would include TV channels and the ITVX streaming service but exclude ITV Studios. Comcast previously bought Sky from Rupert Murdoch for 30bn in 2018. James Murdoch bought a 17.9% stake in ITV for 940m in 2006, and Sky was later forced by regulators to sell that holding. Liberty Global recently halved its 10% stake in ITV. ITV's market value has slumped to around 2.5bn, prompting temporary 35m budget cuts and an expected 9% fall in key fourth-quarter advertising revenues.

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