British cable operator NTL has approached ITV about combining the two companies, offering new hope to an ailing broadcaster that has lost advertisers, viewers and its chief executive this year.
ITV, home to Coronation Streetand The X Factor, saw its shares surge as much as 8 per cent after the scheduled talks were disclosed today.
"This process is at a very preliminary stage and there is no assurance that these discussions will lead to any offer being made for ITV," NTL said in a statement, confirming an earlier report on the Guardian Website.
ITV confirmed a "highly tentative expression of interest about holding discussions" from NTL and said it was willing to listen, but that no meeting had been held and no proposal had been received.
ITV's market capitalisation is about £4.1 billion, or $7.8 billion, while NTL's is about $8.9 billion.
Some analysts struggled to see the rationale for such a deal, expressing initial scepticism about the potential cost savings.
ITV has been suffering at the hands of a dismal advertising market and losing audience to the growing number of niche digital channels offered in Britain by the likes of NTL and satellite operator BSkyB.
It has also been operating without a permanent ceo while it hunts for a replacement for Charles Allen, who resigned earlier this year.
Among those being considered is Stephen Carter, the former ceo of UK media regulator Ofcom, who was also formerly a managing director of NTL.