Stock Markets June 24, 2026 06:00 PM

Sky Nears Agreement to Acquire ITV’s Media Unit in £1.6 Billion Transaction

Deal includes ITV taking ownership of Love Productions; lawyers finalizing terms with potential announcement within weeks

By Leila Farooq
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Sky has agreed terms to acquire ITV’s broadcast and streaming arm for £1.6 billion, with ITV set to take over Sky’s Love Productions as part of the package. The arrangement, which includes a performance-linked earn-out, has moved forward in recent days and is being finalized by legal teams. Market participants say a formal announcement could arrive within about two weeks, though final legal matters could delay timing.

Sky Nears Agreement to Acquire ITV’s Media Unit in £1.6 Billion Transaction
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Key Points

  • Sky has agreed terms to acquire ITV’s broadcast and streaming unit for £1.6 billion - impacts the media and broadcasting sectors.
  • As part of the deal, ITV will take ownership of Love Productions, with that component estimated between £80 million and £120 million based on comparable transactions - relevant to production and content businesses.
  • The agreement includes about £200 million in potential earn-out payments tied to the ITV unit’s performance, and legal finalization could allow an announcement within two weeks - affecting M&A and corporate legal processes.

Sky has reached agreement on terms to purchase ITV’s broadcast and streaming division for a total of £1.6 billion, according to people familiar with the negotiations who spoke to Reuters. The transaction will also see ITV acquire Love Productions from Sky as part of the overall arrangement.

Sources say negotiations advanced over the past week and the deal is now being worked on by lawyers. Sky is controlled by Comcast (NASDAQ:CMCSA), while ITV (LON:ITV) remains listed on the London Stock Exchange.

The reported £1.6 billion figure reflects the inclusion of ITV Studios acquiring Love Productions, a component that insiders indicate could be worth between £80 million and £120 million when compared with similar transactions. In addition, the package is reported to include an earn-out mechanism of roughly £200 million that would be payable subject to the future performance of the ITV unit.

People close to the talks said a public announcement might be possible within the next two weeks. At the same time, they cautioned that outstanding legal details could delay that timetable.

The proposed deal would resolve a process that began last year and became public when ITV disclosed in November 2025 that it was in discussions to sell the business, referred to as Media & Entertainment, to Sky.


Summary: Sky has agreed terms to buy ITV’s Media & Entertainment broadcast and streaming arm for £1.6 billion, with ITV taking ownership of Love Productions as part of the transaction. Lawyers are finalizing the deal, which includes a performance-linked earn-out and could be announced within about two weeks, though legal complexities could delay the announcement.

Details:

  • Agreement reached on terms for a £1.6 billion acquisition of ITV’s broadcast and streaming unit by Sky.
  • ITV is set to acquire Sky’s Love Productions; sources estimate Love’s value at roughly £80 million to £120 million based on comparable deals.
  • The transaction reportedly contains an earn-out of about £200 million contingent on the ITV unit’s future performance.
  • Legal teams are finalizing documentation; a deal announcement could occur in the next two weeks, though timing remains subject to legal completion.

Risks

  • Timing risk - sources say the deal could be announced in the next two weeks, but final legal complications could push that timetable - relevant to corporate and legal advisory sectors.
  • Performance contingency - about £200 million of the transaction is structured as an earn-out dependent on the ITV unit’s future performance, creating execution risk for valuation and payments - relevant to media operations and investor return assumptions.

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