Sky has agreed to acquire ITV for £1.6 billion in a deal that will create the largest commercial broadcaster in the United Kingdom. The transaction, first announced last November, includes ITV's media and entertainment arm, encompassing the streaming platform ITVX and all free-to-air channels. Regulatory approval is still required before the deal can be finalized.
ITV's studio operations are not part of the acquisition. According to The Guardian, the deal includes £1.2 billion in cash. Sky chief executive Dana Strong described the move as '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.'
Shareholder Returns and Public Service Commitments
ITV chair Andrew Cosslett stated: 'At a headline value of up to £1.6bn, the sale of ITV's M&E division will deliver a significant cash return to shareholders.' Shareholders are expected to receive approximately 25p per share, with £950 million in cash being returned to them as part of the sale.
Cosslett added: 'Crucially, the transaction also unlocks the value of ITV Studios, which post completion will be a distinctive pure-play global content business, with a strong track record of success and excellent prospects, further underpinned by a long-term partnership with ITV M&E and Sky.'
Future of British Broadcasting
Dana Strong emphasized the complementary nature of the two brands: '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.'
All of ITV's public service broadcasting commitments will be maintained under the deal. Strong also praised ITV's transformation under its current leadership, particularly its successful move into streaming through ITVX, which she said 'has brought fantastic British content to millions of viewers across the UK.'
