Sky, owned by US telecoms giant Comcast, has announced a £1.6bn deal to acquire ITV's broadcasting and streaming arm, creating the UK's largest commercial broadcaster. The transaction includes ITV's free-to-air TV channels and the ITVX streaming platform.
Deal Details and Payments
Sky will pay an initial £1.2bn in cash for ITV's media and entertainment business, with a potential additional £200m in the second half of 2028 depending on 2027 advertising revenues. As part of the deal, Comcast will sell its Love Productions business—which produces The Great British Bake Off and The Piano—to ITV for £200m.
Sky described the acquisition as an opportunity to create a "UK-focused national streaming champion" to compete with US platforms like Netflix, YouTube, and Amazon Prime Video. The deal is expected to face 12 to 18 months of regulatory scrutiny from the Competition and Markets Authority and Ofcom.
ITV Studios Remains Independent
The deal does not include ITV Studios, the production arm behind shows like I'm a Celebrity… Get Me Out of Here! and Mr Bates vs the Post Office. ITV Studios will remain a standalone company listed on the London Stock Exchange. Sky has committed to spending at least £2.1bn between 2028 and 2032 on the studios business as part of a long-term strategic partnership, safeguarding programmes such as Coronation Street and Love Island.
Free-to-Air Commitment
Sky has pledged that "fan-favourite" ITV shows and sports like the Six Nations rugby tournament will not move behind a paywall. Dana Strong, Sky's chief executive, said: "All of those shows will remain on the free ITV service. Coronation Street, Emmerdale, Love Island, I'm a Celebrity, Ant and Dec. There is no plan or intention of putting those loved shows behind a paywall. We think that is an important commitment we are making." Strong also indicated Sky plans to make more sport available free-to-air.
Financial and Regulatory Impact
ITV's board expects to return £950m to shareholders, with an additional £65m placed in escrow for the ITV pension scheme. Sky has agreed to pay an £80m break fee if the deal fails to gain regulatory approval, while ITV would pay £11.5m if the Love Productions acquisition is blocked.
Sky identified approximately £200m in annual cost synergies, expected by the end of the third year after closing, primarily from efficiencies in marketing, technology platforms, and non-UK content. Strong said a "minority" of savings would come from job cuts in duplicated corporate and commercial functions.
Regulatory Scrutiny and Future Structure
Ofcom is likely to examine concerns over Sky News taking half of ITV's 40% stake in ITN, the producer behind ITV News, Channel 4 News, and 5 News. Strong said there are no plans to merge Sky News and ITV News, pledging to maintain independence until at least 2034 in line with ITV's licence obligations. She added that ITV's regional news operation presents an opportunity for Sky, which lacks a local news offering.
Last week, Comcast announced plans to spin off its media operation—including Sky and NBCUniversal—into a separate publicly listed company. Chris Kennedy, ITV's finance chief, said he does not believe the spin-off will affect the regulatory process for Sky's takeover.
Andrew Cosslett, ITV's chair, said: "For over seven decades, ITV has played an important and cherished role in the public life of the nation. 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 this transaction achieves this."
Carolyn McCall, ITV's chief executive, who some sources believe may leave after the takeover, noted that ITV currently spends £100m annually on non-UK content, which it would no longer need once part of Comcast.
