Key facts
- Sky will acquire ITV's broadcasting arm, ITV Media and Entertainment, for £1.6 billion.
- The deal includes £1.2 billion cash upfront, £200 million in 2028, and the sale of Love Productions for £200 million.
- Sky's owner, Comcast, plans to spin off its media businesses, including Sky, into NBCUniversal.
- ITV expects to return approximately £950 million to shareholders following the deal.
- Sky committed to spending £2 billion on ITV's studios business.
Sky has agreed to acquire ITV's broadcasting arm, ITV Media and Entertainment, for £1.6 billion. The deal, announced on Monday, includes £1.2 billion in cash upfront, an additional £200 million in 2028, and the sale of Love Productions, the maker of "The Great British Bakeoff," to ITV Studios for £200 million.
Sky stated that viewers' favorite ITV shows will remain free to watch and that ITV's commitments to national and regional news are safeguarded. Andrew Cosslett, Chairman of ITV, emphasized that the transaction secures ITV's crucial role as a Public Service Broadcaster, creating a UK champion with the scale to compete with global streaming platforms.
The acquisition comes as Sky's owner, Comcast, plans to spin off its media businesses, including Sky, into a separately listed entity, NBCUniversal. Both Sky and ITV's Media and Entertainment division will become part of NBCUniversal once the merger is completed, expected in the second half of next year.
An additional £200 million payment from ITV is contingent on the company generating more than £1.7 billion in advertising revenue next year. The process of spinning off ITV's broadcasting arm is estimated to cost about £185 million over the next three to four years. Following the deal's completion, ITV expects to return approximately £950 million to its shareholders.
Prior to the deal, Sky had committed to spending £2 billion on ITV's studios business to protect popular British programs such as "Coronation Street" and "Love Island." Sky's chief executive, Dana Strong, described the acquisition as a defining moment for British media, aiming to build a stronger future for two of the UK's most trusted brands.