ITV has agreed to sell its media and entertainment arm to Sky for up to £1.6 billion, the companies announced on Thursday, following months of negotiations. The deal will combine ITV's terrestrial TV channels and streaming service ITVX with Sky's platform to create a major competitor to global streaming giants such as Netflix, Amazon, and Disney.
Details of the Deal
Under the terms, Sky will pay £1.2 billion for the broadcasting unit and sell its Love Productions business to ITV, valued at £200 million. Love Productions produces popular shows including The Great British Bake Off and The Piano. ITV may also receive an additional payment of up to £200 million in two years, contingent on its advertising sales performance. The sale does not include ITV's production arm, ITV Studios, which will become a standalone pure-play global content business listed on the London Stock Exchange.
Impact on UK Television
ITV Studios will retain the rights to produce and supply content to the combined Sky and ITV entity, including hit shows like Love Island, I'm A Celebrity...Get Me Out Of Here!, Coronation Street, and Emmerdale. Sky has committed to spending at least £2.1 billion on content from ITV Studios between 2028 and 2032. The companies said the combined business will have a larger content budget and better technology to compete with streaming platforms in the UK.
Industry Context
British broadcasters including ITV, BBC, and Channel 4 have been developing their own streaming services to counter the dominance of US giants like Netflix, Amazon, and Disney, which have transformed television viewing habits globally. Sky is owned by US media giant Comcast, which is in the process of splitting into two companies, with Sky's European business set to become part of NBCUniversal.
Reactions from Executives
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, chairman of ITV, said: '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. The combined business will create a UK champion with the scale and resources to better compete with global streaming platforms.'
