ITV plc has confirmed it is in early discussions with Sky, owned by Comcast, regarding a potential £1.6 billion sale of its television and streaming division.

The deal would include ITV’s Media & Entertainment arm — home to its free-to-air channels and the ITVX streaming platform — while the company’s production arm, ITV Studios, would remain independent and continue to operate under the existing structure.

News of the talks sent ITV shares sharply higher, rising nearly 18 percent in early trading and adding roughly £500 million to its market value. The surge reflects investor optimism that the transaction could unlock significant shareholder value and streamline ITV’s focus on its globally successful production business.

For Sky, acquiring ITV’s broadcasting and streaming operations would strengthen its position in UK media, bolstering advertising reach and expanding its audience base at a time of accelerating competition from global streaming platforms.

The talks are described as preliminary, with no certainty that a formal offer will be made. Any deal would be subject to regulatory approval due to the combined market share in UK television advertising.

If completed, the sale would mark one of the most significant shake-ups in British broadcasting in years — redefining the competitive landscape between traditional networks and global streaming giants.