Sky Makes $2.1 Billion Bid for ITV’s Networks Arm

British television presenter ITV confirmed it had received a £1.6 billion ($2.1 billion) offer from Comcastpay TV platform Sky for its media and entertainment division.

The shock news that came suddenly to the UK will see Comcast take control of ITV's linear channels and ITVX's streaming business, significantly expanding its position in British television having already acquired Sky for around $30 billion in 2018. Sky's proposal centers on potentially creating a UK-focused streaming giant, according to news reports.

In a short statement sent out on Friday morning, ITV said it had taken note of “recent press speculation and confirmed that it is in advanced discussions regarding the potential sale of its M&E business to Sky for an enterprise value of £1.6 billion.”

It added: “There can be no certainty as to the terms on which any potential sale may be agreed, or as to whether any transaction will take place. A further announcement will be made in due course if necessary.”

The discussions do not include ITV's production and commercial arm, ITV Studios, which produces shows such as Love Island, I'm a Celebrity and drama Mr Bates Versus the Post Office, and which has been the focus of numerous recent takeover rumors. RedBird IMI and Banijay are believed to have shown interest in the unit.

Confirmation of deal talks came shortly after ITV said it would “temporarily” cut its budgets by $46 million due to a “softening economy” in the UK and uncertainty from advertisers. The company said it expects advertising revenue to fall 9% in the key fourth-quarter period in the run-up to Christmas.

ITV shares jumped 18% in early trading in London on Friday following news of a potential deal with Sky.