Sky and ITV have agreed terms on a £1.6 billion ($2.1 billion) acquisition deal that is set to reshape British broadcasting, with an announcement expected within the next two weeks, according to Reuters.
As part of the agreement, Love Productions, the producer behind The Great British Bake Off, will be sold to ITV Studios. Sky acquired 70% of Love in 2014 and the remaining stake in 2020, with founder Richard McKerrow departing last year.
The deal concerns ITV's Media & Entertainment arm, which includes its channels and streaming service ITVX, rather than its Studios division. ITV Studios, known for producing shows like Love Island and Squid Game: The Challenge, will remain separate and gain Love Productions, bolstering its intellectual property portfolio.
ITV boss Carolyn McCall recently highlighted the resilience of the Media & Entertainment business, describing it as “extremely resilient and cash generative.” ITV's share price rose 2.5% following the news. In a first-quarter trading update, ITV's M&E revenue dipped slightly to £477 million, while ITV Studios grew 4% to £400 million.
Sky, owned by US media giant Comcast, is leading the deal, with its parent company playing a supporting role. The transaction requires approval from Ofcom and the Competition and Markets Authority, and raises questions about the future of Sky and ITV's news operations, given ITV News is produced by ITN.
