Sky has warned over job cuts and said it will look to save £200 million in costs following its £1.6 billion deal to buy ITV’s media and entertainment arm. The media and pay TV broadcaster did not specify how many roles would be at risk, but indicated cuts in corporate and commercial divisions where there is overlap.
Sky employs around 20,000 staff in the UK, while ITV has about 2,400 workers in the media and entertainment division. The deal will see Sky acquire ITV’s terrestrial TV channels and streaming service ITVX, but excludes ITV Studios, the production arm behind shows like I’m A Celebrity and Mr Bates Vs The Post Office.
Cost Savings and Job Impact
Sky group chief executive Dana Strong said job cuts are not the main focus of the £200 million annual savings targeted within three years after the deal completes. The bulk of cost reductions will come from technology, marketing, and overseas content. Strong stated: “There is some duplication in roles in corporate functions and commercial functions as there is when you bring, inevitably, two organisations together. But it’s the minority of the synergy.” The group said it was too soon to estimate the number of jobs affected.
Creating a Competitor to Global Streaming Giants
The companies said the deal will create a major competitor to global streaming platforms like Netflix and Amazon. Talks have been ongoing since late last year to finalize terms, which are set to be transformative for UK television. ITV Studios will become a “pure-play global content business” with shares listed on the London Stock Exchange, and a long-term agreement to supply content to the combined Sky and ITV, including popular programmes like Love Island, Coronation Street, and Emmerdale. Sky has committed to spending at least £2.1 billion over 2028-2032 on the partnership.
Financial Terms and Regulatory Outlook
Under the deal, Sky will pay £1.2 billion for the broadcasting unit and sell its Love Productions business to ITV, valued at £200 million, which produces shows including The Great British Bake Off. ITV may also receive up to £200 million in two years based on advertising sales performance. Dame Carolyn McCall, chief executive of ITV, said she cannot give “any guarantees” on jobs but noted overlapping roles will be reviewed. She expects a “comprehensive” regulatory review lasting 12 to 18 months. Strong called the takeover a “defining moment for British media.”
Public Service Broadcasting and Regulatory Scrutiny
Sky said ITV will remain a public service broadcaster after the takeover. Andrew Cosslett, ITV chairman, said the combined business will “create a UK champion with the scale and resources to better compete with global streaming platforms.” Sky will also become an indirect 20% shareholder in ITN, which produces news programmes like Good Morning Britain and News At Ten. Dame Caroline Dinenage, MP and chairwoman of the Culture, Media and Sport Committee, called for close regulatory scrutiny “to make sure the deal is in the best interests of audiences.”
