Key facts
- Sky has committed £2bn in spending over five years for ITV's studios business.
- Sky is in talks to acquire ITV's broadcasting arm, including channels and the ITVX streaming platform, for approximately £1.6bn.
- ITV Studios, a major production entity, will be separated and remain a standalone company.
- The deal aims to create a UK streaming competitor against services like Netflix and Amazon Prime.
- Regulatory bodies CMA and Ofcom are expected to scrutinize the proposed takeover.
Sky has committed to spending £2bn on ITV's studios business over the next five years as part of ongoing negotiations for a takeover of ITV's broadcasting arm. The deal, which could be announced in early July, would involve separating ITV Studios, a major global production company responsible for shows like 'Love Island' and 'Mr Bates vs the Post Office', from ITV's free-to-air channels and the ITVX streaming platform.
ITV Studios, which generated more than half of ITV's £4.1bn annual revenues in 2025, would remain a standalone, publicly listed company. Sky, owned by US firm Comcast, aims to bolster its streaming presence by acquiring ITVX, the UK's largest free, ad-supported streaming service, to compete with major subscription platforms. Analysts anticipate potential job losses at ITV due to the consolidation of operations.
As part of the transaction, ITV Studios is reportedly set to acquire Love Productions, the maker of 'The Great British Bake Off', from Sky. The proposed takeover is anticipated to face significant scrutiny from the UK's Competition and Markets Authority (CMA) and telecoms regulator Ofcom. Ofcom is expected to review Sky's ownership of ITN, the producer of ITV News, while the CMA may intervene if the combined TV ad sales operations, potentially giving Comcast control of over 70% of the UK market, are included in the deal.