Sky, owned by US telecoms giant Comcast, has announced a £1.6bn deal to buy ITV’s broadcasting and streaming arm, creating the UK’s largest commercial broadcaster. The acquisition includes ITV’s free-to-air TV channels and the ITVX streaming platform, with an initial cash payment of £1.2bn and a potential additional £200m in 2028 based on 2027 advertising revenues.
Creation of a UK-Focused Streaming Champion
Sky described the deal as an opportunity to build a “UK-focused national streaming champion” to compete with global platforms like Netflix, YouTube, and Amazon Prime Video. As part of the transaction, Comcast will sell its Love Productions business—maker of The Great British Bake Off and The Piano—to ITV for £200m.
If approved after 12 to 18 months of regulatory scrutiny, the deal would end ITV’s 70-year history as an independent public service broadcaster. However, ITV Studios, the production arm behind hits like I’m a Celebrity… Get Me Out of Here! and Mr Bates vs the Post Office, will remain a standalone company listed on the London Stock Exchange.
Commitment to Free-to-Air Shows
Sky has pledged to spend at least £2.1bn between 2028 and 2032 on ITV Studios as part of a long-term strategic partnership, safeguarding popular programmes such as Coronation Street and Love Island. Crucially, Sky said it will not put “fan-favourite” ITV shows or sports like the Six Nations rugby behind a paywall.
“All of those shows will remain on the free ITV service,” said Dana Strong, Sky’s chief executive. “Coronation Street, Emmerdale, Love Island, I’m a Celebrity, Ant and Dec. There is no plan or intention of putting those loved shows behind a paywall. We think that is an important commitment we are making.” Strong added that Sky plans to make more sport available free-to-air.
Financial Details and Shareholder Returns
ITV’s board expects to return £950m to shareholders, with an additional £65m placed in escrow for the ITV pension scheme. Sky has agreed to pay an £80m break fee if the deal fails to gain regulatory approval, while ITV would pay £11.5m if its acquisition of Love Productions is blocked.
Sky identified approximately £200m in annual cost synergies to be realised by the end of the third year post-closure, primarily through efficiencies in marketing, technology platforms, and non-UK content. “A minority” of savings will come from job cuts in overlapping corporate and commercial functions, according to Strong.
Regulatory Scrutiny and News Independence
The takeover is expected to face scrutiny from the Competition and Markets Authority and Ofcom. Ofcom may examine concerns about Sky News taking half of ITV’s 40% stake in ITN, the producer of ITV News, Channel 4 News, and 5 News. Strong pledged no plans to merge Sky News and ITV News, with independence maintained at least until 2034 under ITV’s existing licence obligations. She noted ITV’s regional news operation as an opportunity for Sky, which lacks local news.
Chris Kennedy, ITV’s finance chief, said he did not believe Comcast’s planned spin-off of its media operations—including Sky and NBCUniversal—would impact the regulatory process. The deal comes eight years after Comcast acquired Sky’s European operations for £31bn.
