Sky has finalised the acquisition of ITV's media and entertainment division for up to £1.6 billion, creating a major British broadcasting entity capable of competing with global streaming giants. The deal, announced by both companies, concludes months of negotiations and marks a transformative moment for UK television.
Details of the acquisition
The acquisition includes ITV's traditional television channels and its popular streaming service, ITVX. However, ITV Studios, the production arm behind hits such as I'm A Celebrity and Mr Bates Vs The Post Office, is excluded from the sale. ITV Studios will become a "pure-play global content business" with shares listed on the London Stock Exchange. A long-term agreement ensures ITV Studios continues to supply content, including Love Island, Coronation Street, and Emmerdale, to the combined entity.
Under the terms, Sky will pay £1.2 billion for the broadcasting unit and sell its Love Productions business—maker of The Great British Bake Off and The Piano, valued at £200 million—to ITV. ITV may also receive up to £200 million in two years, contingent on advertising sales performance. Sky has committed to spending at least £2.1 billion on the partnership between 2028 and 2032.
Strategic rationale
Sky, owned by US media giant Comcast, is undergoing a split into two companies, with Sky's European business becoming part of NBCUniversal. The combined business aims to leverage a larger content budget and advanced technology to better compete with global streaming platforms like Netflix, Amazon, and Disney.
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." She described the takeover as a "defining moment for British media."
Andrew Cosslett, chair of ITV, stated that "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" and that the combined business will "create a UK champion with the scale and resources to better compete with global streaming platforms."
Impact on UK television
British broadcasters including ITV, BBC, and Channel 4 have been developing their streaming platforms to compete with US giants that have transformed viewing habits worldwide. This merger positions the new entity as a stronger competitor in the evolving media landscape.
