ITV finalizes £1.6 billion Media & Entertainment sale to Sky

ITV has completed the £1.6 billion sale of its Media & Entertainment business to Comcast-owned Sky. The transaction, agreed in July, leaves ITV as a standalone global content group focused solely on its ITV Studios production arm, with regulatory review underway and closure expected in the second half of 2027.

Chief Executive Carolyn McCall said the process is "progressing as planned." She added, "This is an expected and important milestone in the regulatory review process, and we are pleased that it is moving at pace." The sale covers ITV's broadcast channels and the ITVX streaming service.

Content budget and advertising pressures

While the sale progresses, ITV faces significant advertising headwinds. The company projects its total 2026 content budget will be about £1.2 billion. To manage costs, it implemented £30 million in temporary fourth-quarter content cuts.

This austerity comes amid a sharp forecast for advertising revenue. ITV expects total advertising revenue to fall by 5% to 10% in the final three months of 2026 and by 2% to 3% for the full year compared to 2025. Advertising revenue already slipped 1% over the nine months to September 30, with an 8% drop in the third quarter alone. The UK's new restrictions on advertising for less healthy food, effective from October 2025, contributed to the slowdown.

The cost-cutting measures were detailed as follows:

ITV Studios performance and content pipeline

As the future core of the company, ITV Studios' performance is critical. Its revenue eased 1% to £1.33 billion for the nine-month period, matching internal expectations. The division's production deliveries and licensing deals are heavily weighted to the final quarter.

Fourth-quarter 2026 deliveries include a robust slate for international buyers:

Sales to ITV’s own soon-to-be-sold channels and streamer rose 4% for new and returning scripted and unscripted shows. However, sales to outside buyers fell by 4%. The company expects ITV Studios to deliver good full-year revenue growth ahead of the broader market.

Group revenue for the nine-month period declined 1% to £2.76 billion. In contrast, ITVX streaming hours jumped 29% to 2.15 billion, setting viewing records with World Cup matches and series like 'Trigger Point' and 'Love Island'. High-margin licensing deals through the Global Partnerships unit will provide an additional revenue stream. ITV Studios' full-year revenue growth is expected to outpace the market ahead of the Sky deal closure.