**Television Shake-Up: ITV and Sky in Talks for a Game-Changing £1.6bn Deal**

ITV is in preliminary discussions to sell its broadcasting business to Sky for £1.6bn, potentially transforming the UK’s television industry. The talks focus on ITV’s Media and Entertainment division, which includes its free-to-air channels and the ITV X streaming service. However, the deal does not include ITV’s production arm, ITV Studios, known for hits like Love Island and I’m a Celebrity… Get Me Out of Here!

Analysts warn that if the acquisition occurs, ITV may have to bid against competitors for its own popular shows, which could hinder new content development despite existing contracts. The merger of ITV and Sky could dominate the UK TV advertising market, with estimates showing they would control over 70% of it. Normally, such consolidation would face regulatory challenges, but with the increasing pressure from streaming services like Netflix and Disney+, a takeover might be seen as a necessary strategy for survival.

Prominent figures from the industry, including former ITV chairman Sir Peter Bazalgette, argue that traditional TV advertising should be reevaluated in light of competition from giants like Google and Facebook. Sir Bazalgette noted the growing lack of value in free-to-air channels, predicting a need for consolidation among broadcasters across Europe.

Media analyst Ian Whittaker pointed out that streaming is where growth lies for broadcasters, even as YouTube starts to capture significant viewership, becoming the UK’s second most-watched media service behind the BBC. There’s also speculation that major sporting events could shift entirely to streaming as organizations like UEFA look to monetize their content in this evolving landscape.

ITV Studios, which creates content for multiple platforms, has been mentioned as a desirable independent entity, indicating that it could soon become an acquisition target itself. Following the news of the potential sale, ITV’s share price jumped by 15% but remains significantly below its peak from 2015. Additionally, ITV is bracing for a 9% drop in advertising revenue while implementing cost-saving measures that may delay some programs.