Sky, a subsidiary of U.S. media giant Comcast, is in discussions to acquire the broadcasting division of British broadcaster ITV for $2.1 billion, including debt. The deal would expand the American conglomerate's footprint in Europe.

ITV confirmed on Friday that preliminary talks have taken place regarding the potential sale of its media and entertainment business, which includes one of the UK's most prominent free-to-air TV channels and a growing streaming platform.

The acquisition would strengthen Comcast's position in the UK, where it already operates pay-TV provider Sky. For ITV, the sale would allow it to focus on its expanding production arm, ITV Studios, known for hit shows such as "Love Island" and "The Reluctant Traveler."

Following the announcement, ITV's shares surged 16%. The company noted that the discussions value its broadcasting unit at £1.6 billion ($2.1 billion) on an enterprise basis but cautioned that terms remain undecided and a deal is not guaranteed.

Traditional media companies on both sides of the Atlantic are restructuring through mergers and acquisitions as competition intensifies for viewers and ad dollars amid the rise of streaming and digital platforms.

Comcast, facing subscriber losses in its core broadband business, is also progressing with plans to spin off NBCUniversal's cable channels into a new entity, "Versant." Acquiring ITV's media and entertainment division would bolster its international media operations.

The U.S. conglomerate previously acquired Sky in 2018 for $39 billion after a months-long bidding war with 21st Century Fox, though it later divested Sky's operations in Germany, Austria, and Switzerland.

For ITV, the potential sale of its broadcasting unit follows years of speculation, which had largely centered on its production business, ITV Studios.

The London-listed company reported roughly equal revenue contributions from its two main divisions last year—a shift from a decade ago when broadcasting accounted for two-thirds of total revenue.

ITV's media and entertainment business generated £2.1 billion in revenue last year, encompassing traditional TV operations and its streaming service, ITVX.

In July, ITV CEO Carolyn McCall downplayed reports of acquisition interest in ITV Studios but stated the group would continue evaluating its business structure.

"Everyone is talking to everyone in the industry right now," McCall said during an earnings call, citing discussions around partnerships, content collaborations, and commercial deals.

She emphasized the benefits of ITV's integrated "broadcast and production" model but reiterated openness to adjustments as the company navigates declining ad revenue—impacted by the shift away from traditional media—and rapid growth in its ITVX streaming platform, which reached breakeven two years ago and has since recouped all investment costs.

Analysts at UBS noted that Comcast's acquisition of ITV's broadcasting arm could face regulatory scrutiny, citing concerns over foreign ownership of the UK's largest commercial broadcaster and Comcast's existing dominance in pay-TV through Sky.