Sky has agreed to purchase the Media & Entertainment division of ITV PLC in a deal valued at £1.6 billion ($2.2 billion), the companies announced on Monday. The move would bring one of the UK’s largest commercial broadcasters and streaming operations under Sky’s control, subject to approvals.
Shares of ITV were little changed in London trading following the announcement, compared with a 0.3% gain in the broader FTSE 100.
Deal terms and payments
Under the terms of the agreement, Sky will pay £1.2 billion in cash at completion. There is an additional contingent consideration of £200 million that becomes payable if the acquired unit meets specified advertising revenue targets in 2027. As part of the same set of transactions, ITV will take ownership of Love Productions from Sky for £200 million, bringing the producer of The Great British Bake Off into ITV Studios.
The purchase covers ITV’s free-to-air television channels together with the ITVX streaming platform. ITV Studios will remain a standalone, listed production business rather than being folded into Sky’s operations.
Commitments on programming spend
Sky has committed to a minimum programming spend of £2.1 billion on ITV Studios between 2028 and 2032. The companies said this pledge is intended to support continued investment in content for the production business following the separation.
Strategic rationale
The two firms said the combination is designed to bolster their competitive position against global streaming platforms by widening content offerings and expanding audience reach across the UK. Sky described the enlarged business as one that will unite complementary broadcast, streaming and advertising capabilities while maintaining ITV’s public service broadcasting responsibilities.
Approvals and timeline
The transaction is subject to shareholder, regulatory and competition approvals. Both companies indicated the deal is expected to complete in 2027, pending the necessary clearances.
Market and sector implications
The acquisition affects commercial broadcasting, streaming services and advertising markets in the UK, and has implications for production and content investment through the pledged programming spend on ITV Studios.