ITV in Talks to Sell Networks Arm to Comcast-Owned Sky for $2.1 Billion

U.K. broadcaster ITV has confirmed it has received a £1.6 billion ($2.1 billion) bid from Comcast’s European pay-TV platform Sky for it media and entertainment unit.

The shock news — which landed overnight in the U.K. — would see Comcast take control of ITV’s linear channels and ITVX streaming business, significantly expanding its foothold in the British TV landscape, having already acquired Sky for around $30 billion in 2018. According to news reports, the bid from Sky centres on the potential creation of a U.K.-focused streaming giant.

In a short statement sent Friday morning, ITV it note “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.”

It added: “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.”

The discussions do not include ITV’s production and sales arm, ITV Studios, which has the center of numerous takeover rumours in the last year. RedBird IMI and Banijay are understood to have expressed an interest in the unit.

Confirmation of the deal talks came shortly after ITV reported that it would “temporarily” shave $46 million from its budgets over the U.K.’s “softening economy” and advertiser uncertainty. It said it expected ad revenues to fall by 9% in the key fourth-quarter period in the lead up to Christmas.

ITV shares leaped 18% at the start of trading in London on Friday following news of a potential deal with Sky.