ITV has agreed to sell its media and entertainment arm to Sky for up to £1.6 billion, following months of negotiations. The deal will combine the division with Sky to create a formidable competitor to global streaming giants like Netflix and Amazon Prime Video.
Details of the Deal
The sale includes ITV's terrestrial TV channels and its streaming service ITVX. However, ITV's production arm, ITV Studios—known for producing hit shows such as I'm A Celebrity...Get Me Out Of Here! and the acclaimed drama Mr Bates Vs The Post Office—is not part of the transaction.
Under the agreement, ITV Studios will become a "pure-play global content business" with its shares listed on the London Stock Exchange. It will also enter into a long-term agreement to supply content to the newly combined Sky and ITV entity.
Industry Impact
Dana Strong, Sky's group chief executive, said: "Bringing Sky and ITV Media & Entertainment together combines the very best of free-to-air television, pay TV and streaming, ensuring viewers across the UK continue to enjoy outstanding British programming in a rapidly changing world. ITV will remain a public service broadcaster at the heart of British life, and we're excited about the future we can build together."
The deal underscores the intense competition in the streaming market, where traditional broadcasters are merging to better compete with well-funded global platforms. The combined entity will have significant scale in advertising and subscription revenue.
