ITV’s McCall confident Sky assets deal will complete in second half of 2027

ITV CEO Carolyn McCall has said Sky’s deal for its broadcast assets remains on course despite UK media regulator Ofcom and the Competition and Markets Authority (CMA)’s review into the takeover.

Carolyn McCall

UK culture secretary Lisa Nandy last week issued a Public Interest Intervention Notice (PIIN) to the CMA and Ofcom regarding Sky’s proposed £1.6bn (US$2.16bn) deal for ITV’s broadcasting business.

McCall said the regulatory review is “moving at pace,” with the deal “progressing as planned” and set to be completed in the second half of 2027.

The CMA and Ofcom have been asked to provide reports on the impact of the deal by January 27, 2027. Following that, Nandy will decide whether to refer the deal for a more detailed investigation by the CMA. Chief among her concerns is the effect the move would have on the range of news options open to UK viewers.

While Sky News and ITV News attract an audience share of just 26% between them, and other news sources like the BBC and Channel 4 are available, Nandy has expressed concern that soon 86% of news viewing would be divided up between just two entities: the BBC and the merged ITV and Sky.

Comcast-owned Sky struck the deal earlier this year to buy ITV’s Media & Entertainment (M&E) arm, which will see ITV Studios (ITVS) spun-off as a standalone content business listed in London.

McCall said: “The agreed sale of our M&E business to Sky, which will position ITVS as a highly attractive, pure-play, global content business, is progressing as planned. On November 4, the secretary of state issued a PIIN. This is an expected and important milestone in the regulatory review process, and we are pleased that it is moving at pace. We continue to expect completion in the second half of 2027.”

McCall was speaking as ITV published its third-quarter trading update for the first nine months of 2026, which saw revenue at ITV slip by 1% year-on-year, while total streaming viewing hours rose by 29%.

Revenue declined by 1% at both ITVS and at the M&E business, slipping from £1.35bn to £1.33bn at ITVS and from £1.45bn to £1.43bn at M&E. Total revenue combining both businesses dipped from £2.8bn to £2.76bn year-on-year.

At ITVS, internal revenue grew by 4% thanks to the delivery of new and returning programmes for ITV M&E, but external revenue fell by 4% due to the “expected phasing” of production deliveries and licensing deals, which ITV said are heavily weighted to the final quarter of the year.

In Q3, ITVS produced five of the UK’s top 10 most-watched dramas, according to the broadcaster. These included The Gentlemen for Netflix, Ludwig season two and Vigil S3 for the BBC, and The Blame and The Dark for ITV.

At M&E, digital revenue grew by 7% in the nine months to September 30, but this was offset by the continuing decline in linear advertising.

Digital ad revenue grew by 6% in the period, with streamer ITVX delivering record viewing thanks to the final matches of the Fifa World Cup, dramas such as Trigger Point and entertainment formats including Big Brother and Love Island. Total streaming hours rose by 29% from 1.67 billion to 2.15 billion.

So far this year, eight of the 10 most-watched series across commercial broadcasters and streaming services were on ITV, according to the company.

Total ad revenue was down 1% in the nine-month period, declining by 8% year-on-year in Q3.

Looking ahead to the full year, ITV said it expects to deliver good revenue growth at ITVS. At M&E, it forecasts continued profitable digital revenue growth but a 2-3% decline in total ad revenue year-on-year, with a 5-10% drop in Q4.

To align its costs with advertiser demand, ITV has identified £30m of additional temporary savings at M&E in Q4. This comprises £25m of content savings and £5m of discretionary non-content savings. The total content budget for 2026 is expected to be around £1.2bn.

McCall said: “While the outlook for advertising remains muted, we are firmly focused on self-help and mitigating actions while continuing to execute our strategic priorities to drive performance across both businesses.”