Sky is buying ITV for £1.6 billion in a bid to compete with major streaming services.
The mammoth acquisition, which has been in the works since late last year, includes terrestrial channels ITV1, ITV2, ITV4, ITV Quiz, as well as streaming service ITVX. However, it does not include the production arm, ITV Studios, which is behind hit shows like I’m A Celebrity, Love Island, Coronation Street, Mr Bates Vs The Post Office, and more.
Instead, it’ll become a “pure-play global content business” with its shares due to be listed on the London Stock Exchange. However, a long-term agreement with Sky TV should see its latest must-binge boxsets come to its channels, the British broadcaster confirmed.
Sky has committed to pouring a minimum of £2.1 billion between 2028-32 into the partnership. By combining the businesses, Sky says television shows can expect bigger budgets as well as access to resources and technology to better compete with global streaming platforms, like Netflix, Apple TV, Disney+, and Prime Video.
US business executive Dana Strong said the deal is a way of combining the “very best of free-to-air television” with the “pay TV and streaming” that Sky is best known for
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SKY TV PRESS OFFICEThese US streamers have transformed the way that people watch television around the world – with many of these firms distributing shows and films via streaming, increasing production budgets, releasing all episodes at the same time so that viewers can “binge” an entire series, and offering features like the ability to identify a song playing in the background of a scene or browse other projects from the same actor or director with a few taps.
Dana Strong, Sky 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.”
The executive claims the takeover will be a “defining moment for British media”.
Linear broadcasts via ITV channels and on-demand content from ITVX are already available across Sky+ HD, Sky Q, Sky Glass, and Sky Stream hardware, so that won’t change as part of the acquisition
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SKY TV PRESS OFFICEHowever, there’s still a long road ahead. The takeover isn’t expected to close until the second half of 2027 and will need to be approved by UK regulators.
For his part, ITV Chairman Andrew Cosslett 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”.
The sale also does not include Scottish media group STV, which is a separate company.
Both companies have confirmed there will be no immediate changes to popular television programmes, and ITV will not shy away from its public service broadcast commitments.
If you watch free-to-air ITV channels via platforms like Freeview, Freesat, or the next-generation Freely, which is set to overtake both before the end of the decade, then there’s no need to worry about ITV vanishing from the listings.
That’s because ITV committed to a 10-year renewal of its public service broadcasting licences back in 2024, keeping its free-to-air presence guaranteed in TV Guides until 2034. That means critical shows, like national and regional news broadcasts and prime-time series, will remain available to everyone nationwide for free. Sky will honour those obligations until the current 2034 deadline, but it has not confirmed what will happen after 2034.
It’s unclear whether terrestrial broadcasts in the UK will continue at all beyond that deadline.
Shows produced by ITV Studios, like Love Island, are separate from the acquisition
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ITV STUDIOS
Until the mid-2030s, Freeview, Freesat, and Freely viewers will be able to continue watching free-to-air channels from ITV under the licence fee, including sports broadcasts. These channels will continue to be available via Sky TV.
Shows produced by ITV Studios, like Love Island, I’m A Celebrity… Get Me Out of Here!, Coronation Street, and Emmerdale will be covered in the supply agreement, meaning they will remain on ITV. If so much remains the same, what is Sky getting for spending £1.6 billion?
ITV is the UK’s oldest and largest commercial terrestrial television network, as well as running digital channels and a major streaming platform. A deal will therefore significantly boost Sky’s access to UK viewers, outside its current pay-to-view platforms. Once the deal is completed, it will also give Sky a very dominant position in the UK’s TV advertising market, giving it a strong position in contract discussions.
Not only that, but analysts have suggested that viewers might see a “cross-pollination” in content between the broadcasters in the future, with it likely to have a particular impact on streaming.
Gill Hind, managing director and director of TV at Enders Analysis, told Press Association: “ITVX is growing but is still behind iPlayer and Channel 4 in terms of how many of the channels’ viewers use the streaming service. There could definitely be streamlining crossover opportunities with Sky able to make their programmes available to ITVX users who wouldn’t usually access their shows.”
She added that there could also be some impact on sports coverage, as it would likely seek to share rights across its public and paid-for channels.
The deal is very likely to face some form of investigation by regulators. Media regulator Ofcom and competition regulator, the Competition and Markets Authority (CMA), are both likely to look at the deal. The combined group’s potential dominance in the TV advertising space is expected to be a particular focus on any regulatory process.