Key Points
- Sky has agreed to acquire ITV’s Media & Entertainment business for up to £1.6 billion (U.S. $2.16 billion), the companies confirmed on Monday.
- The acquisition includes ITV’s broadcast networks and ITVX, but excludes ITV Studios, which will become a standalone publicly traded production company.
- Sky says the acquisition strengthens its ability to compete with global streaming platforms, while ITV says its public service broadcasting obligations remain protected.
Comcast’s British-based pay television company Sky Group has officially agreed to acquire public service broadcaster ITV in a deal valued at up to £1.6 billion (U.S. $2.16 billion), creating one of the biggest consolidations in British television in years while leaving ITV Studios to operate as an independent publicly traded production company.
The transaction, announced Monday, includes ITV’s commercial broadcast networks, ITVX streaming service and related media assets, but excludes ITV Studios. The production business will remain listed on the London Stock Exchange following completion of the deal.
Sky, which has been owned by Comcast since 2018, is expected to become part of the new NBC Universal following Comcast’s planned corporate separation next year. If both transactions close as planned, ITV’s Media & Entertainment assets will join Sky under the standalone NBC Universal company.
The agreement values ITV’s Media & Entertainment business at between £1.4 billion (U.S. $1.89 billion) and £1.6 billion (U.S. $2.16 billion). ITV will receive £1.2 billion (U.S. $1.62 billion) in cash at closing, plus Love Productions — the producer of “The Great British Bake Off” and “The Piano” — valued at £200 million (U.S. $270 million). ITV could receive an additional £200 million (U.S. $270 million) in 2028 if advertising revenue exceeds £1.7 billion (U.S. $2.30 billion) during the 2027 financial year.
After transaction costs, ITV expects net cash proceeds of approximately £1.05 billion (U.S. $1.42 billion). The company said it intends to reduce ITV Studios’ leverage before returning roughly £950 million (U.S. $1.28 billion), or about 90 percent of net proceeds, to shareholders.
As part of the transaction, ITV Studios and Sky have signed a long-term content supply agreement valued at a minimum of £2.1 billion (U.S. $2.84 billion) covering the 2028 through 2032 period. The agreement includes continued production of flagship ITV programs including “Coronation Street,” “Emmerdale,” “Love Island” and “I’m a Celebrity… Get Me Out of Here!,” ensuring the series will remain available on ITV rather than moving exclusively behind Sky’s pay television services.
The acquisition comes amid accelerating consolidation across the global media industry as traditional broadcasters seek greater scale to compete with streaming services including Netflix and YouTube. Combined, Sky and ITV accounted for an 18.3 percent share of television and streaming viewing in the United Kingdom during May, according to Barb ratings data, just behind YouTube’s 18.6 percent share.
Sky Chief Executive Officer Dana Strong called the acquisition “a defining moment for British media” and said ITV would remain “a public service broadcaster at the heart of British life.”
“We have huge respect for the transformation the ITV team has delivered, particularly its successful move into streaming through ITVX, which has brought fantastic British content to millions of viewers across the U.K,” White said in a statement. “Bringing Sky and ITV Media & Entertainment together combines the very best of free-to-air television, pay TV and streaming, ensuring viewers across the U.K 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.”
ITV Chief Executive Officer Carolyn McCall said the agreement builds on the broadcaster’s transformation over the past several years, highlighting the launch of ITVX and the growth of ITV Studios into a major international production company. She also emphasized that ITV’s public service broadcasting obligations, including regional and national news commitments under its Channel 3 licenses through 2034, will remain in place following the acquisition.
The separation creates one of the world’s largest standalone television production companies in ITV Studios: The business produces franchises including “Love Island,” “Britain’s Got Talent” and “Fool Me Once,” while the addition of Love Productions expands its portfolio of owned intellectual property.
The deal is expected to close during the second half of 2027, subject to regulatory approvals and customary closing conditions.
