Must read: ITV pins hopes on World Cup and possible Sky deal
ii’s head of investment rounds up the morning’s big news.
14th May 2026 09:24
by Victoria Scholar from interactive investor
ITV has said it remains in active discussions with Sky over a possible sale of its M&E business. There have been concerns that talks were dwindling, however today’s announcement reignites investor hopes that a deal could still be on the table.
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The stock remains at around a 15% premium to levels seen before initial discussions were first announced in November. A £1.6 billion deal would be positive for ITV shareholders since it would generate a significant cash return and shift the business’ focus away from declining linear TV towards its more successful content production.
Elsewhere, ITV delivered a mixed update – total external revenue grew by 1% in the first quarter. Although total advertising revenue fell by 1.5% in Q1, the outlook is more positive. Expect a 10% Q2 boost from this summer’s men’s football World Cup which begins in June and where the group will be showing more matches and at peak times. Media and Entertainment revenue declined by 2% in Q1 but ITV Studios revenue grew by 4%. It has benefitted from strong deliveries to global streaming platforms like Netflix and Disney with successful shows like Rivals and Love Island US.
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ITV has struggled in recent years with the decline in traditional broadcasting that has hit TV advertising demand. However, it has been attempting to strengthen its digital advertising revenue which rose by 14% thanks to a record start to the year for ITVX with rising total streaming hours.
Investors have been on the fence towards ITV, with the stock jumping in and out of the FTSE 100 in recent times. The stock is down 7% so far this year and analysts are sticking with a consensus hold recommendation on the stock.
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