ITV confirms talks over possible sale of broadcasting business to Sky

ITV has confirmed early stage talks over a possible sale of its broadcasting arm to Sky in a deal that would value the division at £1.6 billion.

The group behind hit shows such as I'm A Celebrity... Get Me Out Of Here! and Love Island said there was no certainty over the terms of any possible sale of its media and entertainment division, or whether a deal would be agreed.

Shares in ITV surged as much as 19% in early morning trading on Friday after the announcement.

It follows reports late on Thursday revealing Sky owner Comcast was holding discussions with ITV over a possible deal to buy the public service broadcaster's media and entertainment arm, which includes its terrestrial TV channels and streaming service ITVX.

But the sale would not include ITV's production arm, ITV Studios, which makes shows including I'm A Celebrity and the popular drama Mr Bates vs The Post Office, which has also been the subject of previous sale speculation.

ITV said: "There can be no certainty as to the terms upon which any potential sale may be agreed or whether any transaction will take place.

"A further announcement will be made in due course if appropriate."

A deal between the pair would be transformative for the UK television sector.

It would see Comcast, which bought Rupert Murdoch's Sky for £30 billion in 2018, expand its footprint in the UK and Europe and leave FTSE 250-listed ITV focused on its studio operations.

ITV has repeatedly been touted as a takeover target in recent years, with its production arm having attracted interest from rivals and private equity.