Sky has warned of potential job cuts as it aims to save £200 million in costs following its £1.6 billion acquisition of ITV’s media and entertainment arm. The broadcaster, which employs around 20,000 staff in the UK, did not specify how many roles are at risk. However, it indicated that cuts would occur in corporate and commercial divisions due to anticipated overlap. ITV’s media and entertainment division currently has about 2,400 workers.
Details of the Deal
The deal includes ITV’s terrestrial TV channels and its streaming service, ITVX. It excludes ITV Studios, the production arm responsible for shows like I’m A Celebrity and Mr Bates Vs The Post Office. Sky group chief executive Dana Strong said that job cuts are not the main focus of the £200 million annual savings targeted within three years.
“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,” Strong said. The group said that it was too soon to say how many jobs will be impacted.
Competitive Landscape
The companies said the deal will create a major competitor to global streaming giants. They have been in talks since late 2025 to hammer out the terms of a sale, which is set to be transformative for UK television. ITV Studios will become a “pure-play global content business” with its shares listed on the London Stock Exchange following the sale, and a long-term agreement to supply content to the newly combined Sky and ITV.
ITV Studios is behind popular programmes such as Love Island, I’m A Celebrity, Coronation Street and Emmerdale. Sky has committed to spending at least £2.1 billion over 2028-2032 on the partnership.
Financial Terms
Under the terms of the deal, 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, and is valued at £200 million. ITV may also receive a payment of up to £200 million in two years’ time subject to its advertising sales performance.
Dame Carolyn McCall, chief executive of ITV, said she cannot give “any guarantees” on jobs, but said overlapping roles would be looked at across both Sky and ITV’s businesses. She said the companies were “hopeful” the deal will get regulatory approval, but expected a lengthy and “comprehensive” review lasting 12 to 18 months.
Industry Reactions
Ms Strong 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.” She called the takeover 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 will also become an indirect 20 per cent shareholder in the ITN business, which makes news programmes such as Good Morning Britain and News At Ten and regional news for London, with ITV retaining half of its current 20 per cent stake. Dame Caroline Dinenage, MP and chair of the Culture, Media and Sport Committee, called for close regulatory scrutiny “to make sure the deal is in the best interests of audiences”.
