Sky has finalised the purchase of ITV's media and entertainment division for up to £1.6 billion, concluding months of negotiations and creating a formidable British broadcasting giant to compete with global streaming platforms.
Deal Details
The strategic agreement, announced by both companies, merges ITV's traditional television channels and its popular streaming service, ITVX, with Sky. However, the deal excludes ITV Studios, the broadcaster's prolific production arm responsible for hits such as I'm A Celebrity and the acclaimed drama Mr Bates Vs The Post Office. Following the sale, ITV Studios will become a pure-play global content business, with its shares listed on the London Stock Exchange.
Under the terms, Sky will pay £1.2 billion for the broadcasting unit and sell its Love Productions business to ITV, which makes shows including the Great British Bake Off and The Piano, valued at £200 million. ITV may also receive up to £200 million in two years, subject to its advertising sales performance.
Content Commitment
A long-term agreement ensures ITV Studios continues to supply content, including beloved British staples like Love Island, Coronation Street, and Emmerdale, to the newly combined Sky and ITV entity. Sky has committed to spending at least £2.1 billion over 2028-2032 on the partnership.
The firms said the combined business will have a bigger content budget, resources, and technology to better compete with global streaming platforms in the UK.
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.' She described the takeover as a 'defining moment for British media'.
Andrew Cosslett, the chair of ITV, said 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'.
Sky is owned by US media giant Comcast, which is in the midst of plans to split into two companies, and will see Sky's European business become part of NBCUniversal. British broadcasters including ITV, BBC, and Channel 4 have developed their streaming platforms to compete with US giants like Netflix, Amazon, and Disney, which have transformed TV viewing worldwide.
