Sky Agrees £1.6bn Acquisition of ITV Media & Entertainment In Landmark UK Media Deal

Sky has reached an agreement to acquire ITV Media & Entertainment (ITV M&E) from ITV in a deal worth up to £1.6 billion (€1.86 billion), subject to customary adjustments for cash, debt and working capital, bringing together two of the UK’s most established media brands.

The transaction comprises £1.2 billion in cash, the transfer of Love Productions, and up to £200 million in performance-related earn-out, subject to regulatory approvals and customary closing conditions.

The proposed acquisition comes as the UK media landscape continues to evolve rapidly, with traditional broadcasters facing growing competition from global streaming platforms and digital-first services. Sky said the combination would create a stronger business capable of competing more effectively in an increasingly fragmented market.

Following completion, ITV’s free-to-air channels and streaming platform ITVX will continue to operate as free-to-air services, with the broadcaster maintaining its public service broadcasting (PSB) obligations, including national and regional news. Sky will continue to offer its portfolio of subscription television, premium sports, entertainment and connectivity services.

The combined business would reach a significant share of UK audiences. ITV currently reaches around 40 million viewers each week and attracts more than 16.5 million monthly digital users. Together, Sky and ITV M&E are expected to account for approximately 20 per cent of all in-home television viewing in the UK, making the combined entity second only to the BBC and ahead of YouTube, while creating one of the country’s largest commercial streaming businesses.

Dana Strong, Group CEO of Sky, 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 of ITV, said the transaction builds on ITV’s transformation while preserving its public service role.

“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,” she said.

“Through the commitments made by Sky, the combined ITV M&E and Sky business will continue to deliver everything about ITV that our viewers and advertisers value—from programmes that reflect and shape society to trusted national and regional news. I am also confident that Sky will be a strong and responsible custodian of ITV M&E, investing in its future while safeguarding the qualities that make ITV so valued by viewers and the UK’s creative industries.”

As part of the agreement, Sky will also enter into a five-year content supply agreement worth £2.1 billion with ITV Studios. The deal is expected to support continued investment in British programming while sustaining employment, skills and growth across the UK’s creative sector. Programming commissioned under the agreement will not count towards ITV’s independent production quotas, ensuring continued opportunities for independent producers.

Sky expects the acquisition to generate approximately £200 million in annual run-rate cost synergies by the end of the third year following completion, primarily through efficiencies across marketing, technology platforms and non-UK content operations.

The transaction remains subject to regulatory approval and other customary closing conditions.