Sky has agreed to acquire ITV’s broadcasting and streaming business in a deal worth up to £1.6 billion, marking one of the largest transactions in the UK media sector in recent years and strengthening the country's ability to compete with global streaming platforms.
The agreement will see Sky purchase ITV’s media and entertainment division for £1.2 billion in cash, alongside the transfer of Love Productions and up to £200 million in performance-based payments. The transaction follows months of negotiations between the two companies.
As part of the deal, Sky will take ownership of ITV’s terrestrial television channels and its streaming platform. However, ITV Studios, the company's television production business behind internationally recognised programmes such as I'm a Celebrity...Get Me Out of Here!, will continue operating as an independent company.
The acquisition is intended to strengthen the UK's commercial media landscape at a time when traditional broadcasters face increasing competition from international streaming services.
According to ITV, the combined business will unite free-to-air television, advertising-supported streaming, subscription television, broadband, mobile, and enterprise services under a single organisation, creating a more diversified media company with multiple revenue streams.
The merged operation is expected to reach around 20% of total in-home television viewing in the UK, positioning it behind the BBC while surpassing YouTube in audience share. ITV currently reaches approximately 40 million viewers each week and serves more than 16.5 million monthly digital users, significantly expanding Sky's audience base.
The companies estimate the transaction will generate approximately £200 million in annual cost savings by the end of the third year after completion. The savings are expected to come from efficiencies in marketing, technology infrastructure, and international content acquisition.
Alongside the acquisition, Sky has agreed to a five-year content supply agreement worth £2.1 billion with ITV Studios, ensuring a continued pipeline of original programming for the combined business.
Following completion, the enlarged Sky-ITV operation will become part of NBCUniversal after its planned corporate restructuring. Despite the merger, Sky News and ITV News will continue to operate as separate editorial organisations, maintaining independent news operations.
Investors reacted positively to the announcement, with ITV shares rising in London trading after the deal was made public.
The acquisition reflects the accelerating consolidation within the global media industry as broadcasters seek greater scale, stronger digital capabilities, and broader content portfolios to compete with international streaming leaders.
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