ITV has confirmed it remains in “active” talks with Sky over a potential £1.6 billion sale of its broadcasting business to the Comcast-owned rival.

The I’m A Celebrity… Get Me Out Of Here broadcaster is said to be close to finalising a deal to sell its media and entertainment (M&E) division to Sky in a move that would create a broadcaster and streamer to rival the likes of Netflix, Amazon and Disney+ in the UK.

ITV said on Thursday: “Following our announcement in November 2025, we remain in active discussions with Sky regarding a possible sale of the M&E business.

“We will update the market in due course.”

The pair are reportedly looking to structure the deal to include a payout of up to around £200 million that will be based on future performance.

It comes as ITV reported a 2% fall in total advertising revenues year-on-year in the three months to March 31.

Its media and entertainment division saw revenues fall 2% to £477 million despite 12% growth in digital revenues, but its ITV Studios production…