# ITV Sale to Sky Proceeds Amid Ad Revenue Declines Broadcaster cuts content spending as advertising demand weakens in the U.K. market. - **Source:** [Variety – TV](https://variety.com/v/tv) - **Published:** 2026-11-11 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/90b95e81-4735-43f4-8ffb-7ba541bc77f9 ## Acquisition Progresses as Planned ITV CEO Carolyn McCall confirmed that the sale of its Media Entertainment business to Comcast-owned Sky remains on schedule for completion in late 2027. The deal, valued at £1.6 billion, is currently undergoing a regulatory review process following a Public Interest Intervention Notice issued by U.K. Culture Secretary Lisa Nandy. ## Content Budget Reductions Facing a slump in advertising demand, ITV is cutting £25 million from its fourth-quarter content budget. An additional £5 million in discretionary spending will be trimmed, bringing total fourth-quarter reductions to £30 million. The company now projects its total 2026 content expenditure to reach approximately £1.2 billion for the full year. ## Advertising Market Challenges ITV expects advertising revenue to decline by 5% to 10% in the final quarter of 2026. This downturn is attributed to broader economic uncertainty, the migration of ad budgets toward global streaming platforms, and new U.K. government restrictions on advertising for less healthy food products that took effect in October 2025. ## Digital Growth vs Linear While digital revenue rose 7% to £461 million, it failed to offset the decline in linear television advertising. Streaming hours on ITVX surged 29% to 2.15 billion, driven by popular content like Love Island and Big Brother. Despite these gains, total group revenue for the nine-month period dipped 1% to £2.76 billion. ## Studios Performance Outlook ITV Studios, which produces hits like The Gentlemen and Line of Duty, remains a core pillar of the company's future strategy. Although nine-month revenue eased 1% to £1.33 billion, the studio expects strong full-year growth. Production deliveries are heavily weighted toward the fourth quarter, supported by high-margin licensing deals with external buyers. ## Regulatory Review Process The Competition and Markets Authority and media regulator Ofcom are currently examining the Sky takeover bid. McCall described the regulatory intervention as an expected milestone in the process. The company is cooperating with authorities to ensure the deal proceeds, maintaining its focus on long-term strategic priorities despite the current challenging market environment. ## Financial Mitigation Strategies Beyond budget cuts, ITV continues to execute its £100 million share buyback program, having already repurchased £81 million in stock. Management is prioritizing self-help measures to mitigate the impact of muted advertising outlooks. These actions aim to drive performance across both the Media Entertainment and ITV Studios divisions throughout the coming year. ## Strategic Future Positioning Once the sale concludes, ITV will operate as a standalone global content group centered on its production arm. This transition reflects a broader industry shift where broadcasters prioritize content creation over linear distribution. The company's ability to maintain production margins will be critical as it navigates the evolving media landscape post-divestiture. ## Sources covering this story - https://variety.com/2026/tv/news/itv-sky-sale-progressing-cuts-q4-content-spend-1236944980/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._