Sky has agreed to buy ITV’s media and entertainment division for up to £1.6bn, in what the companies called a “defining moment for British media” that will create a stronger rival to global streaming giants such as Netflix and YouTube.
The deal — one of the biggest takeovers in British media history — includes ITV’s free-to-air TV channels in the UK and its ITVX streaming service. Sky, which is owned by the US telecoms giant Comcast, will pay £1.2bn in cash initially, with a further £200m potentially due in the second half of 2028, contingent on 2027 advertising revenues.
“Sky buys ITV's broadcasting arm for £1.6bn to challenge global streaming giants.”
“The UK media market is undergoing a profound and rapid transformation,” Sky Group said in a statement. “As competition for audiences intensifies, scale matters more than ever in order to compete with global streaming giants and YouTube in the UK.”
The deal does not include ITV Studios, the programme-making arm behind hits such as Love Island, I’m a Celebrity…Get Me Out of Here! and Mr Bates vs the Post Office. ITV Studios will remain a standalone business listed on the London Stock Exchange.
As part of the transaction, Comcast will sell its Love Productions business — which makes The Great British Bake Off and The Piano — to ITV for £200m. Sky has also committed to spend at least £2.1bn on content from ITV Studios between 2028 and 2032, safeguarding the future of long-running shows such as Coronation Street and Emmerdale.
Dana Strong, Sky’s chief executive, said: “This is a defining moment for British media and an opportunity to build a stronger future for two of the UK’s most loved and trusted brands.” She added that Sky had “huge respect for the transformation the ITV team has delivered, particularly its successful move into streaming through ITVX.”
ITV is required by law to provide a free-to-air service until at least 2034 under its public service broadcasting licence. Sky said there would be no immediate change to popular shows, with viewers continuing to enjoy programmes such as This Morning, Loose Women, Lorraine and News at Ten.
The board expects to return £950m to ITV shareholders after completion, and a further £65m will be put into escrow for the benefit of the ITV pension scheme. If the deal fails to gain regulatory approval, Sky has agreed to pay a break fee of £80m, while ITV would owe £11.5m if it fails to secure the nod from regulators.
Andrew Cosslett, ITV’s chair, said: “For over seven decades, ITV has played an important and cherished role in the public life of the nation. At a time of rapid change in the industry, it is right that we now secure ITV’s crucial role as a public service broadcaster.”
Susannah Streeter, chief investment strategist at Wealth Club, said the deal represented “a significant step in the reshaping of Europe’s media landscape.” She warned that the key challenge would be ensuring cost cuts did not come “at the expense of the creative talent, editorial experience and institutional knowledge that have underpinned both organisations’ success.”