Sky to acquire ITV’s media and entertainment business in £1.6 Billion deal
Comcast-owned Sky has agreed to acquire ITV’s media and entertainment division in a deal worth up to £1.6 billion ($2.1 billion), creating a larger UK media company aimed at strengthening its position against global streaming competitors. The transaction includes ITV’s free-to-air television channels and streaming platform ITVX, while ITV Studios will remain a separate publicly listed production business.
The deal
Under the agreement, ITV will receive £1.2 billion in cash, with up to an additional £400 million linked to the future performance of advertising revenue and Love Productions. ITV said it expects to return most of the proceeds to shareholders.
The expectations
Sky said the combined business will continue to support ITV’s public service broadcasting obligations and maintain separate news operations. The companies expect to achieve around £200 million in annual cost savings, with job reductions primarily affecting overlapping functions such as marketing, technology and non-UK content operations.
Expected to close within the next 1,5 years
Following the transaction, ITV Studios will continue producing content for a range of broadcasters and streaming services while entering into a long-term production agreement with the combined Sky-ITV business worth at least £2.1 billion between 2028 and 2032. The acquisition remains subject to regulatory approval and is expected to close within the next 12 to 18 months.