A big shake-up in British television has been announced after ITV agreed to sell its Media and Entertainment business to Sky for up to £1.6 billion.
The agreement, subject to shareholder and regulatory approval, will create the UK’s largest commercial broadcaster.
The sale will enable ITV Studios to operate as a distinct global content business, supported by a long-term content supply agreement with ITV M&E and Sky which has commited to spending a minimum £2.1bn over 2028-2032. The transaction is anticipated to complete in the second half of 2027.
Sky, part of the Comcast Corporation, said UK media market is undergoing “a profound and rapid transformation and, as competition for audiences intensifies, scale matters more than ever in order to compete with global streaming giants and YouTube in the UK.
“Together, Sky and ITV Media & Entertainment will combine free-to-air broadcasting, advertising-funded streaming and subscription television together with Sky’s wider portfolio of broadband, mobile and business services.
“The diversity of revenue streams of the combined entity provides a resilient and durable business model which will underpin its long-term success.”
Following completion, ITV channels and ITVX will remain free-to-air, with its public service broadcasting commitments continuing to be met in full. Audiences will continue to enjoy the programmes they know and love, alongside trusted national and regional news. Sky will continue to be the home of world-class entertainment, unmissable sport, and market-leading connectivity.
ITV already reaches around 40 million people every week and serves more than 16.5 million monthly digital users. Combined with Sky, the business would account for around 20% of all in-home viewing in the UK, second to the BBC and ahead of YouTube, and create a commercial streaming champion for the UK.
The deal comprises an initial £1.2bn cash payment, the contribution of Sky’s Love Productions valued at £200m, and up to £200m cash based on total advertising revenue performance in FY 2027.
Shareholders will receive approximately £950m, or 25p per share, after accounting for transaction and separation costs of approximately £185m gross.
Dana Strong, Sky Group CEO, said: “This is 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. We have huge respect for the transformation the ITV team has delivered, particularly its successful move into streaming through ITVX, which has brought fantastic British content to millions of viewers across the UK.
“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.
“ITV will remain a public service broadcaster at the heart of British life, and we’re excited about the future we can build together.”
Carolyn McCall, chief executive Officer at ITV, said: “ITV has successfully evolved in a rapidly changing media landscape – launching, and scaling, ITVX and developing ITV Studios into a major force in the global content market. This transaction builds on that momentum to deliver clear, tangible value for shareholders.
“At the same time, through the commitments made by Sky, the combined ITV M&E / Sky business will continue to deliver everything about ITV that our viewers and advertisers love and value and our people are hugely proud of.
“In addition, all of ITV’s PSB commitments, including regional and national news, are safeguarded under the terms of the Channel 3 Licences until 2034, which Sky is acquiring as part of the Transaction.
“I am also confident that Sky will be a strong and responsible custodian of ITV M&E, building on its heritage while investing in its future and safeguarding the qualities that make ITV so valued by viewers, advertisers and the UK’s creative industries.”
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