Key facts
- Sky is acquiring ITV's media and entertainment division for £1.6 billion ($2.13 billion).
- The deal includes ITV's broadcast network, free-to-air channels, and the ITVX streaming platform.
- ITV will receive £1.2 billion in cash and up to £200 million in an earn-out.
- Love Productions will be sold to ITV Studios for £200 million.
- ITV Studios, the production arm, remains with ITV and is not part of the sale.
Sky Group, owned by Comcast, has agreed to acquire the media and entertainment business of U.K.-based ITV for £1.6 billion ($2.13 billion), a move poised to reshape the British broadcasting landscape. The transaction will integrate ITV's broadcast network, linear free-to-air channels, and the ITVX streaming service into Sky's operations. ITVX currently serves 900,000 paid subscribers and 16.4 million monthly active users on its free ad-supported tier.
Under the terms of the deal, ITV will receive an initial £1.2 billion in cash, with an additional earn-out of up to £200 million contingent on 2027 advertising revenues. In a separate transaction, Love Productions, the producer of "The Great British Bake Off," will be sold to ITV's remaining content business, ITV Studios, for £200 million. ITV Studios itself, responsible for shows like "Love Island," is excluded from the sale and will continue as an independent content company.
This acquisition follows months of negotiations and comes as ITV aims to reduce its reliance on advertising revenue, which has shown recent softness. Analysts suggest ITV's strategic shift focuses on its global content production capabilities. The combined entity is expected to create the UK's largest commercial broadcaster, better positioned to compete with global streaming platforms.
The deal is subject to regulatory review by the U.K.'s Competition and Markets Authority and Ofcom, with particular attention likely on the combined TV news operations.