Sky £1.6bn ITV acquisition deal is a high-stakes bet on the future of British broadcasting

Sky has agreed to acquire ITV Media & Entertainment from ITV plc in a deal worth up to £1.6 billion, bringing together two of the UK’s best-known broadcasters at a time of growing competition from global streaming platforms. 

The proposed transaction, which remains subject to regulatory approval, combines free-to-air television, advertising-funded streaming and subscription television under one roof, creating a larger media group with the scale to invest in British programming while strengthening its position against international rivals.

The agreement comprises £1.2 billion in cash, the transfer of Love Productions and up to £200 million in performance-related earn-out payments. While ITV plc will continue to own ITV Studios, Sky will acquire ITV’s broadcasting and streaming operations, including its portfolio of television channels and ITVX.

The proposed transaction combines free-to-air television, advertising-funded streaming and subscription television under one roof…

Sky deal will keep ITV free-to-air

The acquisition reflects the changing economics of television. As audiences fragment and streaming services compete for viewing time, UK broadcasters have come under increasing pressure to achieve greater scale. Together, Sky and ITV Media & Entertainment would account for around one-fifth of all in-home television viewing in the UK, second only to the BBC and ahead of YouTube. The combined business would also unite multiple revenue streams spanning advertising, subscriptions, broadband, mobile and business services.

For viewers, Sky has sought to reassure audiences that ITV’s identity will remain intact. ITV’s channels and ITVX will continue to operate as free-to-air services, while all public service broadcasting commitments, including regional and national news, will remain in place under the Channel 3 licences until 2034. 

Flagship programmes including Coronation Street, Emmerdale, Love Island and I’m A Celebrity… Get Me Out Of Here! will remain freely available rather than moving behind a subscription paywall.

ITV Chief Executive Carolyn McCall confirmed that Sky has committed to maintaining original ITV programming throughout the broadcaster’s key evening schedule between 6pm and 9.30pm. Sky has also pledged greater investment in ITV programming and says the transaction will result in more sport being shown on free-to-air television. ITV News and Sky News will continue to operate as separate editorial organisations.

Dana Strong, Group CEO of Sky, described the agreement as “a defining moment for British media”.

“This is a defining moment for British media and an opportunity to build a stronger future for two of the UK’s most loved and trusted brands,” she said. “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 UK.

“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.”

McCall said the transaction builds on ITV’s transformation over recent years, including the launch of ITVX and the continued growth of ITV Studios as an international production business.

“ITV has successfully evolved in a rapidly changing media landscape,” she said. “This transaction builds on that momentum to deliver clear, tangible value for shareholders.

“At the same time, through the commitments made by Sky, the combined ITV M&E / Sky business will continue to deliver everything about ITV that our viewers and advertisers love and value and our people are hugely proud of, making programmes that reflect and shape society, bringing people together for shared experiences and having the quality, diversity and plurality that are the hallmarks of our contribution to the UK’s creative industries.”

The deal also carries significant implications for the wider creative sector. Sky has agreed to enter into a £2.1 billion content supply agreement with ITV Studios over five years, supporting continued investment in British production while helping sustain employment, skills and growth across the UK’s television industry. Importantly, programmes commissioned under the agreement will not count towards ITV’s independent production quotas, preserving opportunities for independent producers.

Operationally, Sky expects the enlarged business to generate around £200 million in annual cost savings by the end of the third year after completion, with efficiencies coming primarily from technology platforms, marketing and the acquisition of non-UK programming. More broadly, the companies argue the merger will create a stronger UK-owned media business capable of competing more effectively with global streaming services while safeguarding public service broadcasting and investment in British storytelling.

The transaction remains subject to customary regulatory approvals, with further details expected in due course.