Sky has agreed to acquire ITV's media and entertainment division for £1.6 billion, in a deal that reshapes the British television landscape. The transaction, first reported last November, is subject to regulatory approval and will see Sky take control of ITV's free-to-air channels and streaming platform ITVX.
Deal Structure and Shareholder Returns
The acquisition includes £1.2 billion in cash, according to The Guardian. ITV's studio operations are not part of the sale. Shareholders are expected to receive approximately 25p per share, with £950 million in cash being returned to them.
ITV chair Andrew Cosslett said: 'At a headline value of up to £1.6bn, the sale of ITV's M&E division will deliver a significant cash return to shareholders. Crucially, the transaction also unlocks the value of ITV Studios, which post completion will be a distinctive pure-play global content business, with a strong track record of success and excellent prospects, further underpinned by a long-term partnership with ITV M&E and Sky.'
Strategic Vision for British Media
Sky chief executive Dana Strong described the move as '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 praised ITV's transformation under its current leadership, particularly its successful move into streaming through ITVX.
'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,' Strong added. 'ITV will remain a public service broadcaster at the heart of British life, and we're excited about the future we can build together.'
Public Service Commitments Maintained
All of ITV's public service broadcasting commitments will be upheld under the deal. The combined entity will become the largest commercial broadcaster in the UK, merging Sky's pay-TV and streaming infrastructure with ITV's free-to-air reach and popular programming.
