Sky has pledged to spend £2bn on ITV's studios business over the next five years as it finalizes a takeover of ITV's broadcasting arm, a move that will protect popular programmes such as Coronation Street and Love Island. The deal, valued at £1.6bn, could be announced in early July, according to the Sunday Times.
Takeover Details and Structure
Sky, owned by US telecoms giant Comcast, has been in talks for months to acquire ITV's media and entertainment operations, including its free-to-air TV channels and the ITVX streaming platform. The negotiations involve separating these assets from ITV Studios, which will remain a standalone company listed on the London Stock Exchange. ITV Studios, one of the world's largest production companies, produced shows like Love Island, I'm a Celebrity... Get Me Out of Here!, and the drama Mr Bates vs the Post Office. It accounted for more than half of ITV's £4.1bn annual revenues in 2025.
Spending Commitment and Programme Security
Sky already has a long-term commercial partnership with ITV and buys shows from ITV Studios. The £2bn spending commitment continues an existing arrangement and is not new money, according to a source. This commitment is expected to put the business on solid footing and guarantee the future of key programmes, including the soaps Coronation Street and Emmerdale, as well as Love Island and I'm a Celebrity. As part of the deal, ITV Studios is expected to buy Love Productions, the maker of The Great British Bake Off, from Sky.
Regulatory Scrutiny and Market Impact
The takeover is expected to face scrutiny from the UK's Competition and Markets Authority (CMA) and telecoms regulator Ofcom. Ofcom is likely to examine concerns about Sky News' owner taking ITV's 40% stake in ITN, the production company behind ITV News, Channel 4 News, and 5 News. Any deal combining ITV and Sky's TV ad sales operations could give Comcast control of over 70% of the UK ad market, potentially prompting CMA intervention. Industry sources suggest Sky may need to offer remedies, such as relinquishing third-party sales deals for Channel 5 and Disney in the UK, which could lead the CMA to reconsider how it measures the ad market to include digital advertising.
Sky's Streaming Ambitions
Analysts predict the takeover could result in significant job losses at ITV to eliminate duplication. Sky aims to create a UK streaming champion by buying ITVX, the country's largest free, ad-supported streaming service, competing with subscription services like Netflix, Amazon Prime, and Disney+. ITVX had 16.5 million monthly active users in 2025, up from 14.7 million in 2024. Sky and ITV declined to comment on the ongoing negotiations.
