British broadcaster ITV on Friday confirmed it is in preliminary discussions to sell its Media & Entertainment business to Sky for an enterprise value of 1.6 billion British Pounds.
The company, which made the announcement in response to press speculation, cautioned that the talks are at an early stage.
"There can be no certainty as to the terms upon which any potential sale may be agreed or whether any transaction will take place," ITV said in a statement.
The Media & Entertainment division includes ITV's linear broadcast channels and its ITVX streaming service.
The potential sale follows a challenging period for the unit, with ITV recently forecasting a 9% drop in total advertising revenue for the fourth quarter amid a softening U.K. economy.
In its trading update for the first nine months of 2025, the company reported that revenue in its M&E division fell 5%, while its ITV Studios production arm grew 11%.
A sale would see ITV divest its traditional broadcasting arm to focus on its expanding global content production business.
ITV said a further announcement would be made if appropriate.
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