ITV has agreed to sell its media and entertainment arm to Sky in a deal worth up to £1.6 billion, set to deliver a major shake-up to the UK television industry. The companies said the takeover will create a significant rival to the world’s biggest streaming platforms, but made assurances that there will be no immediate changes to popular TV programmes, nor ITV’s commitment to public service broadcasting.
Details of the Deal
On Monday morning, ITV said it had agreed to sell its media and entertainment division to Sky following months of talks. ITV will receive £1.2 billion in cash and gain ownership of Sky’s Love Productions, which produces The Great British Bake Off and is valued at £200 million, plus up to £200 million subject to advertising performance. The takeover is expected to complete during the second half of 2027 and requires regulatory approval.
London-based Sky is owned by US media giant Comcast, which also owns NBC and Universal Pictures. Comcast recently announced plans to split into two companies: an independent Comcast focusing on telecoms and a spin-off media operation named NBCUniversal. Sky and ITV will sit under the NBCUniversal umbrella group.
Which Parts of ITV Are Included?
Sky is taking over ITV’s media and entertainment arm, covering terrestrial TV channels ITV1, ITV2, ITV4, ITV Quiz, and streaming service ITVX. Sky will also become an indirect 20% shareholder in ITN, which makes news programmes such as Good Morning Britain and News at Ten and regional news for London. All other regional news programmes made by ITV are included in the deal.
The sale does not include ITV’s production arm, ITV Studios, which produces shows including Coronation Street, I’m A Celebrity, and Mr Bates vs The Post Office. ITV Studios will become a standalone business following the sale. Nevertheless, Sky has committed to spending at least £2.1 billion over 2028-2032 on content from ITV Studios as part of a long-term agreement to air its shows. The sale also does not include Scottish media group STV, which is a separate company.
Impact on Viewers and ITV’s Public Service Role
In 2024, ITV committed to a 10-year renewal of its public service broadcasting licences until 2034. This means important programmes, including national and regional news, current affairs, and prime time content, must remain available to everyone nationwide for free. Sky pledged to continue meeting the obligations of the licences until they expire, but did not say what would happen after 2034.
ITV’s channels and ITVX will remain as they are and free-to-air, including sport content, on platforms like Freeview, Freely, and Sky’s platforms. ITV News and Sky News will also remain distinct editorial voices. Dana Strong, Sky’s group chief executive, said the deal “combines the very best of free-to-air television, pay TV and streaming, ensuring viewers across the UK can continue to enjoy outstanding British programming in a rapidly changing world.” Programmes produced by ITV Studios, like Love Island, I’m A Celebrity… Get Me Out of Here!, Coronation Street, and Emmerdale, will be covered in the supply agreement, meaning they will remain on ITV. Sky will maintain its current pay-to-view model with an array of shows including sport and entertainment. There is no immediate impact on staff across both organisations, Sky said.
Why Sky Wants the Business
ITV is the UK’s oldest and largest commercial terrestrial television network, also running digital channels and a major streaming platform. The deal will significantly boost Sky’s access to UK viewers outside its current pay-to-view platforms. Once completed, it will also give Sky a very dominant position in the UK’s TV advertising market, strengthening its position in contract discussions.
Future Implications for Viewers
Analysts suggest viewers might see a “cross-pollination” in content between the broadcasters in the future, particularly impacting streaming. Gill Hind, managing director and director of TV at Enders Analysis, told PA: “ITVX is growing but is still behind iPlayer and Channel 4 in terms of how many of the channels’ viewers use the streaming service. There could definitely be streamlining crossover opportunities with Sky able to make their programmes available to ITVX users who wouldn’t usually access their shows.” She added that there could also be some impact on sports coverage, as Sky would likely seek to share rights across its public and paid-for channels.
Regulatory Scrutiny
The deal is very likely to face investigation by regulators. Media regulator Ofcom and the Competition and Markets Authority (CMA) are both expected to examine the deal. The combined group’s potential dominance in the TV advertising space is expected to be a particular focus of any regulatory process.
