ITV is cutting £30 million in costs before the end of the year as its planned takeover by Sky faces regulatory investigation. The company, which produces I'm A Celebrity and other major shows, is reducing spending in response to a projected full-year decline in advertising revenues of between 2 and 3 per cent. Around £25 million of the cuts will come from content savings, including delays to some programme releases into next year, with a further £5 million from other discretionary spending reductions. ITV said jobs would not be affected by the measures.
Culture Secretary Lisa Nandy has ordered the Competition and Markets Authority and media regulator Ofcom to investigate Sky's £1.6 billion deal to acquire ITV's media and entertainment division on public interest grounds. Both regulators must report back to her by 27 January on competition and media public interest considerations. ITV chief executive Dame Carolyn McCall said the group was taking "decisive action" to tackle the weaker advertising market.
The deal would see ITV's terrestrial television channels and streaming service ITVX merge with Sky, creating a combined entity intended to compete with global streaming platforms. However, ITV Studios, the production arm behind shows such as I'm A Celebrity and Mr Bates Vs The Post Office, is not included in the sale. ITV Studios will instead become a separate public company listed on the London Stock Exchange, with a long-term agreement to supply content to the combined Sky and ITV business.
For UK businesses and investors, the regulatory delay means uncertainty around whether the takeover will proceed remains unresolved until at least late January, potentially affecting ITV's strategic direction and performance.