Must read: Sky/ITV deal, Halfords shares soar
ii’s head of investment rounds up the morning’s big news.
25th June 2026 08:50
by Victoria Scholar from interactive investor
Photo: Peter Dazeley/Getty Images.
Sky/ITV
Sky is agreeing to acquire ITV (LSE:ITV)’s broadcast and streaming unit, according to Reuters’ sources. The £1.6 billion deal is reportedly being finalised by lawyers and could be officially announced in the next fortnight.
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Shares in ITV soared as much as 16% in early November last year when preliminary talks to sell its TV business to Comcast’s were first announced. Since then, the stock has traded mostly sideways hovering in a tight range around 80 pence.
There had been concerns that talks were dwindling given the lack of progress updates. However, ITV said last month that active discussions with Sky were still ongoing, reigniting investor hopes that a deal could still be on the table. The stock has still been trading at a premium to levels seen before discussions were first announced and shares initially spiked over 3% this morning but have since pared gains.
The deal would be very positive for ITV shareholders by shifting its focus away from its stagnating linear TV business, allowing the company to focus more on content production via ITV Studios instead and generate a significant cash boost from the proceeds.
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For Sky, the deal would solidify its dominance in the UK TV market, supporting its advertising revenues and boost its streaming assets.
Halfords
Halfords Group (LSE:HFD) reported full-year underlying profit before tax of £45.4 million beating expectations for £40.3 million. Group sales grew by 4.8% with retail up 4.1% and auto centres up 5.8%. It expects 2027 earnings to come in around £45.7 million to £52.3 million, which is higher than most analysts expected, sending shares soaring. It is also returning cash to shareholders by increasing the total FY26 dividend by 0.2p to 9p. In terms of recent performance, the company said trading in April, May and June were strong and it is yet to see changes in customer behaviour from the Middle East conflict, although this could impact the second half.
Amid a challenging consumer backdrop, consumer demand remains robust for its motoring and cycling services and products. Halfords has delivered a strong set of results, with investors cheering the update, evidenced by today’s double-digit percentage jump in its share price.
A combination of better-than-expected earnings, impressive profit guidance, a dividend increase and positive commentary on its turnaround strategy are all encouraging signs. The stock is now up 45% so far this year, rebounding since the March trough, also supported by a strong trading update in April and some positive analyst commentary too.
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