The owner of Sky News is set to become Britain’s second-biggest broadcaster after striking a £1.6bn deal to buy ITV’s television business, a move that underscores the relentless pressure on traditional media as viewing habits shift online.
Sky, which is owned by Comcast, has agreed to acquire ITV’s broadcast and streaming division following months of talks, according to a statement from the company. The acquisition will create a media empire with a reach second only to the BBC and, critically, larger than YouTube.
“Sky agrees £1.6bn deal to buy ITV's TV business, creating a media giant second only to the BBC in reach.”
The deal comes as ITV, a shareholder in ITN – the news provider for both ITV and Channel 4 – faces the same industry headwinds that have forced legacy broadcasters to consolidate or pivot to streaming. ITV’s own streaming service, ITVX, has been a key part of its strategy, but the sale signals a recognition that scale is needed to compete with global tech giants.
Under the terms of the agreement, Sky will take control of ITV’s main channel, its digital platform, and associated production assets. The transaction does not include ITV’s stake in ITN, which remains separate.
The deal is the latest in a series of consolidation moves in the UK television market, as traditional broadcasters grapple with falling linear viewership and rising costs for content. For Sky, already a major player in pay-TV and broadband, the addition of ITV’s free-to-air channels and streaming service dramatically expands its audience and advertising reach.
Regulatory approval will be required, given the combined entity’s dominance in news and entertainment. The Competition and Markets Authority is likely to scrutinise the deal’s impact on plurality, particularly given Sky’s ownership of Sky News and ITV’s relationship with ITN.
But for now, the deal represents a bet that traditional television can still thrive – if it is big enough. Sky’s plan to surpass YouTube’s UK reach is a direct challenge to the digital-first model that has upended the industry. The question is whether a combined Sky-ITV can stem the tide of viewers migrating to on-demand platforms, or whether it is merely buying time.
