ITV has revealed talks with Sky, the owner of Sky News, over the possible sale of its media and entertainment (M&E) division in a deal worth £1.6bn.
Sky News understands the approach centres on the potential creation of a UK-focused streaming giant.
The division takes in ITV's current broadcast operations and channels, which are largely dependent on advertising revenue.
The talks do not include the company's studios arm, which makes shows such as I'm A Celebrity... Get Me Out Of Here!
Money latest: Mortgage price war predicted
"There can be no certainty as to the terms upon which any potential sale may be agreed or whether any transaction will take place", a statement by ITV to the London Stock Exchange said.
"A further announcement will be made in due course if appropriate", it concluded.
ITV shares jumped by 15% in early trading in response to the statement.
ITV chief executive Dame Carolyn McCall told staff in an email: "It's important for you to be aware that currently there is no agreement in place and there is no certainty around whether any acquisition will go ahead.
"I appreciate this news may come as a surprise... While we don't have any more information we can share today, I want to reassure you we will be as open and transparent as possible. At this stage, it's very much business as usual."
Sky, which is wholly owned by the US media and entertainment firm Comcast, declined to comment.
ITV released its statement after news of the discussions were first revealed by Bloomberg News.
Just hours earlier, the company's latest financial results showed it was moving to save millions of pounds due to an advertising slowdown.
ITV reported delays to some programmes over the coming months to save costs as a result.
It predicted a 9% decline in ad revenues across 2025, with the most recent trends being blamed on advertisers pulling back on spending in anticipation of the chancellor's budget later this month.
It is understood that a possible deal between Sky and ITV would seek to create a larger, more attractive proposition for advertisers in the UK streaming sphere through a focus on UK audiences.
ITV has long been the subject of takeover speculation.
The latest came from the Reuters news agency earlier this year when it reported early-stage talks with Abu Dhabi-backed group RedBird IMI about a possible merger of their respective production businesses.
French media group Banijay was also reported to have held discussions about a possible offer for ITV's studio business or a full takeover.
(c) Sky News 2025: ITV in 'preliminary' talks over £1.6bn sale of media and entertainment arm to Sky
Public 'at risk' as more inmates sent to open prisons - with another manhunt under way
Three prisoners charged with murder of child killer found dead in cell at HMP Wakefield
Eleven arrested during night of protests as Maccabi Tel Aviv visit Aston Villa
Mistaken prison releases 'could be opportunity' for justice secretary, Harriet Harman says
Anti-black discrimination 'baked' into Met Police, report finds
Andrew Mountbatten Windsor summoned by US Congress
Lisa Nandy defended in 'cronyism' row over appointment of football regulator
What we know so far about the prisoners freed by mistake
Prince Harry apologises to Canada for wearing LA Dodgers cap at World Series
