ITV agrees to sell broadcasting arm to Sky for up to £1.6bn

Susannah Streeter, chief investment strategist at Wealth Club, said: “ITV’s decision to sell its broadcasting arm to Sky for up to £1.6 billion marks another significant step in the reshaping of the European media landscape as big players compete in a highly competitive environment.

“It comes at a tough time for journalists, producers and crews in the industry who are already reeling from deep cost-cutting programmes at the BBC.

“Traditional broadcasters are having to change tactics fast in the battle for audiences whose attention is increasingly fragmented across streaming platforms, social media and online video, making advertising revenues harder to sustain.

“By bringing together two of Britain’s biggest broadcasting businesses, the deal promises greater scale and opportunities to improve efficiency, while drawing on decades of industry expertise.

“The big challenge will be ensuring that the drive to cut costs and streamline operations doesn’t come at the expense of the creative talent, editorial experience and institutional knowledge that have underpinned both organisations’ success.

“The move is also likely to reignite speculation that Sky could eventually be spun out as a separate business from Comcast.

“For ITV, it now looks set to double down on what is arguably its strongest asset – creating content that can be sold around the world, regardless of who ultimately broadcasts it.”