In the United Kingdom, ITV announced ongoing discussions with Sky regarding a potential acquisition of its broadcasting division, a deal that could be valued at £1.6 billion. These negotiations were first confirmed by ITV in November, with the company making it clear that there is no certainty that an agreement will be reached. This announcement coincided with ITV's financial report, revealing a 5 percent drop in adjusted pre-tax profits, which fell to £448 million for the year ending December 31, compared to the previous year. The company indicated that despite the decline, it viewed its performance as stronger than expectations, given the challenging backdrop in the media market. As part of these efforts, ITV had earlier cautioned that its advertising revenues were negatively impacted by uncertainties surrounding the British government’s budget announcement in November, affecting overall market conditions. Meanwhile, ITV reported that its total revenues remained broadly flat at £4.1 billion, supported by a 5 percent rise in its ITV Studios production business, which helped offset the decline in its broadcast division. Chief Executive Carolyn McCall highlighted the growth of ITV's streaming service ITVX, stating that it has outperformed some competitors, indicating a shift towards digital content consumption among viewers. This digital shift aligns with ITV’s strategy to transform its operations in light of the evolving media landscape. McCall noted strong growth in digital advertising, mentioning that while some streaming services have plateaued, those operated by broadcasters, like ITVX, are experiencing significant growth. Additionally, ITV is pursuing measures to reduce costs to bolster its financial position, projecting £20 million in further non-content cost savings for the upcoming year. The company is actively adapting to changes in the media and entertainment market and is focused on a strategy termed