ITV has finalised the sale of its media and entertainment division to Sky for up to £1.6 billion, concluding months of negotiations.
The strategic agreement, announced by both companies, aims to merge the division with Sky, thereby establishing a formidable competitor against global streaming behemoths and heralding a potentially transformative era for UK television.
The acquisition encompasses ITV’s traditional television channels and its popular streaming service, ITVX.
However, the deal excludes ITV Studios, the broadcaster’s prolific production arm responsible for hits such as I’m A Celebrity and the acclaimed drama Mr Bates Vs The Post Office. Following the sale, ITV Studios is set to become a "pure-play global content business", with its shares slated for listing on the London Stock Exchange.
A long-term agreement will ensure ITV Studios continues to supply content, including beloved British staples like Love Island, Coronation Street, and Emmerdale, to the newly combined Sky and ITV entity.
Sky has committed to spending at least £2.1 billion over 2028-2032 on the partnership.
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.
The firms said the combined business will have a bigger content budget, the resources and technology to better compete with global streaming platforms in the UK.
Sky is owned by US media giant Comcast, which is in the midst of plans to split into two companies, and will see Sky’s European business become part of NBCUniversal.
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 said the takeover was 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”.
British broadcasters including ITV, BBC and Channel 4 have developed their streaming platforms in a bid to compete with US giants like Netflix, Amazon and Disney – which have transformed the way that people watch TV around the world.
