Today we learn ITV has confirmed it is in talks to sell its media business to Sky parent Comcast for £1.6 billion

In what would inevitably be a significant change to the UK TV viewing landscape, ITV has Broadcasting Limited the potential sale of its broadcasting arm. This needs a lot of unpacking.

What part(s) of ITV are for sale

While nothing is certain, and details will be subject to commercial constrains, in broad terms this means selling thirteen channels from Broadcasting Limited. This includes regional variations in Northern Ireland, southern Scotland, Wales, Isle of Man and the Channel Islands. It would also cover ITVX.

What’s not for sale is ITV Studios, the part that actually makes the programmes.

Why sell and can the deal pass the regulator (OFCOM)

ITV shares had fallen yesterday (Thursday) in response to warnings of weaker advertising revenues. We have to assume producing programmes is now more “core business” than providing the means to watch them. It also implies the UK advertising market is not enough to sustain. Interestingly (BBC report) it might given the combination of companies 70% of the UK commercial market. It’s also interesting to consider the commitments to production of ITN the news arm as well as all the sports licensing both companies have.

From the point of view of Comcast, it’s about growth and consolidation. We’ve long believe market change will eventually be acquisition led, hence why (as an example) Netflix is considering a bid for Warner Bros Discovery. Note Comcast are also doing the same.

What might it mean

Once various contracts progress, it’s inevitable some shows would leave ITV, but possibly new ones might come in from the Comcast stable. While we assume the big titles will remain (eg the soaps), it may be many other titles enter the wider market. We’re told more announcement will follows, and share prices have risen. When we learn more, we’ll update you.