First take: ITV agrees to sell broadcast business to Sky

Research evidence excerpt

First take: ITV agrees to sell broadcast business to Sky

Deutsche Bank Group

Deutsche Numis Research

Rating Company Date

Hold ITV PLC 6 July 2026

Breaking News

Europe

United Kingdom

Reuters Bloomberg Exchange Ticker Price at 3 Jul 2026 (GBP) 81.75

ITV.L ITV LN LSE ITV

Price Target (GBP) 90.00

Media and Online

ADR ISIN 52-week range (GBP) 87.80 - 67.40

Broadcasting

ITVPY US45069P1075

First take: ITV agrees to sell broadcast

Valuation & Risks business to Sky

Nizla Naizer

Announces the sale of the Media and Entertainment (M&E) business to Sky for a Research Analyst

total consideration of up to GBP1.6bn; positive +44-20-754-12403

n This morning, ITV announced the sale of its Media and Entertainment

(M&E) business to Sky for a total consideration of up to GBP1.6bn. This Silvia Cuneo

will comprise of GBP1.2bn of initial cash consideration (payable upon Research Analyst

completion), contribution of Sky’s Love Productions business for an agreed +44-20-754-73770

enterprise value of GBP200m, and contingent cash consideration of up to Tarun Mittal

GBP200m payable in H2-28 based on the performance of TAR in FY27 and Research Associate

other trading balance adjustments. ITV said there will be a cash return to

shareholders of ~GBP950m (~25p per share) excluding the contingent

considerations. The proposed transaction is expected to complete in H2

Price/price relative

2027.

n Following the sale, ITV Studios will remain as a pure-play global content

business. ITV also announced a long-term strategic partnership between 75

ITV Studios and ITV M&E/Sky, including a content supply agreement with

a minimum spend commitment of GBP2.1bn over 2028-32 (over 50

2024 2025 2026

~GBP400m annually). The addition of Love Productions will further boost