According to Deadline, British broadcaster ITV has confirmed it’s in early discussions with Comcast (The Office, Parks and Recreation) regarding a potential £1.6 billion ($2.1 billion) sale of its Media & Entertainment division. The deal, which reportedly came as a surprise overnight, would see Comcast’s Sky acquire ITV’s main broadcast network, its suite of linear channels, and the ITVX streaming platform. Comcast previously purchased Sky (Gangs of London, Brassic) in 2018 for around £30 billion, further strengthening its presence in the UK media landscape.

Deadline reports that ITV confirmed the discussions in a stock exchange statement, noting the talks are preliminary and that there’s “no certainty” an agreement will be reached. If finalized, the acquisition could reshape the UK television industry by creating one of its most dominant broadcasting groups, combining Sky’s existing assets with ITV’s broad reach and audience share.

According to Deadline, Comcast is not the only U.S. studio looking into acquiring ITV’s network division. The broadcaster has revealed plans to eliminate an additional £35 million in expenditures due to a slowing British economy and a continuous drop in advertising revenue. ITV, like other European commercial networks, is looking for new revenue streams to help offset dwindling ad sales.

Deadline also noted while much speculation had focused on ITV’s production arm, ITV Studios (Love Island, Line of Duty), being a potential target for acquisition by companies such as RedBird IMI (All3Media, The SpringHill Company) or Banijay (Survivor, Peaky Blinders), the current talks instead center on the network business. This shift surprised many analysts, as ITV’s broadcast division had been seen as a less likely sale candidate.

In its latest trading update, Deadline notes that ITV reported a 5% revenue decline in its Networks division, totaling £1.44 billion over the first nine months of the year. Any deal with Sky would likely face scrutiny from the UK’s Competition and Markets Authority, as the merger could control over 70% of the UK television advertising market.

Media analyst Ian Whittaker (The Media Analyst, Liberty Sky) told the BBC, per Deadline, that such dominance could typically lead regulators to block the merger. However, former ITV Chairman Peter Bazalgette (The Big Breakfast, Ready Steady Cook) urged regulators to remain flexible, pointing out that ITV now competes with global tech giants like Google (YouTube, DoubleClick) and Meta (Facebook, Instagram) for digital ad revenue.

Following Deadline’s report, ITV’s shares surged by 18% to reach 80p, marking the company’s strongest performance in several weeks. The broadcaster’s stock had been sliding since September, and a successful sale could help appease long-frustrated shareholders by unlocking additional value from its assets.