Sky has reached an agreement to purchase ITV’s media and entertainment division for £1.6 billion, a transaction that would establish Britain’s largest commercial broadcaster.
The deal was confirmed this morning following negotiations that began last November.
Both shareholder approval and regulatory clearance remain necessary before the acquisition can proceed.
The proposed merger represents a significant consolidation within the British broadcasting landscape.
Sky agrees £1.6billion takeover of ITV entertainment
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Comcast-owned Sky, which also operates Sky News, has been in discussions with ITV for several months to finalise the terms.
The acquisition encompasses ITV’s streaming service ITVX alongside its portfolio of free-to-air television channels.
ITV’s studio operations, however, have been excluded from the transaction.
The deal centres on establishing a streaming competitor capable of rivalling dominant American platforms, according to Sky News.
Netflix and Amazon Prime Video currently command substantial market share in the UK, presenting a considerable challenge to domestic broadcasters.
By combining Sky’s resources with ITV’s content and distribution infrastructure, the merged entity aims to offer an alternative to those platforms for British viewers.
Sky said that ITV News and Sky News will continue to operate as separate editorial voices.
Dana Strong, the CEO of Sky Group, said: “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.
“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.”
He added that bringing the businesses together “combines the very best of free-to-air television, pay TV and streaming”, and that viewers can “continue to enjoy outstanding British programming in a rapidly changing world”.
He said: “ITV will remain a public service broadcaster at the heart of British life, and we’re excited about the future we can build together.”
Comcast is the owner of Sky News
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Carolyn McCall, Chief Executive Officer of ITV plc, said the deal reflects the broadcaster’s continued evolution in a fast‑changing media market.
“ITV has successfully evolved in a rapidly changing media landscape, launching and scaling ITVX and developing ITV Studios into a major force in the global content market.
“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 and E and 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.”
She added: “I am also confident that Sky will be a strong and responsible custodian of ITV M and E, building on its heritage while investing in its future and safeguarding the qualities that make ITV so valued by viewers, advertisers and the UK’s creative industries.”