National treasure ITV needs some sympathetic handling

How do you value an asset like ITV? There's the business, obviously. But the commercial broadcaster, the UK's first, is also a cultural institution that still matters. And now that it has a for sale sign outside its HQ, it is also a huge political headache.

- JAMES MOORE CHIEF BUSINESS COMMENTATOR

In terms of pounds, shillings and pence, the broadcaster is worth £1.6bn - that's what Sky, which is owned by the American media giant Comcast, is proposing to pay for it, partly with cash or shares, partly by taking on some of the debt.

What it will get is the broadcaster, so the main ITV channel and its smaller siblings, as well as its streaming business ITVX. Remaining behind will be ITV Studios, which produces programming both for ITV (Coronation Street, I'm a Celebrity..., Love Island and so on) and others - domestic (Ludwig for the BBC would be an example) and global (eg, Rivals, for Disney).

The business logic behind this is that it is hoped ITV Studios will look like a brighter, shinier object for investors if they are focused on its output and earnings rather than constantly fretting about the volatile and downbeat market for TV advertising.

The broadcaster warning of a “soft” fourth quarter, with ad revenues down and £35m of cost cuts planned, drew most of the attention when the company issued its latest results, despite the handy 11 per cent rise in sales posted by ITV Studios. This has long been the way of things, to the frustration of the latter's bosses.