British broadcaster ITV has agreed to sell its Media and Entertainment division to Sky in a landmark deal valued at up to £1.6 billion, marking one of the biggest transformations in the United Kingdom’s broadcasting industry in recent years.
The transaction, which remains subject to regulatory approval, is expected to be completed in the second half of 2027. Under the agreement, Sky will pay an initial £1.2 billion in cash, while ITV will also receive Love Productions, the company behind The Great British Bake Off, valued at £200 million. An additional payment of up to £200 million could be made in 2028 if ITV meets agreed advertising revenue targets during the 2027 financial year.
The sale includes ITV’s free to air television channels and its streaming platform, ITVX. However, ITV Studios, the company’s highly successful production business responsible for global hits such as Love Island, I’m A Celebrity… Get Me Out of Here! and several international productions, is not part of the deal. Instead, ITV Studios will continue as an independent, publicly listed global content company with a long term agreement to supply programmes to both ITV and Sky.
The merger is aimed at strengthening the competitiveness of British broadcasters against international streaming giants such as Netflix, YouTube, Disney+, and Amazon Prime Video. By combining Sky’s pay television services with ITV’s extensive free to air audience and digital streaming operations, the companies hope to create the UK’s largest commercial broadcaster and a stronger player in the rapidly changing media landscape.
Sky Chief Executive Dana Strong described the acquisition as a defining moment for British media, saying the combination of free television, subscription services, and streaming platforms would help ensure viewers continue to enjoy high quality British programming while competing more effectively with global entertainment companies.
ITV Chairman Andrew Cosslett said the agreement secures the broadcaster’s long term future at a time when the television industry is undergoing significant transformation. He noted that ITV would remain committed to its public service broadcasting responsibilities while unlocking greater value for shareholders. As part of the transaction, ITV plans to return approximately £950 million to shareholders following completion of the sale.
Industry analysts believe the deal reflects the increasing pressure traditional broadcasters face from online streaming services, changing viewing habits, and declining television advertising revenues. Consolidation is becoming a common strategy as media companies seek greater scale, improved content investment, and stronger digital capabilities.
If approved by regulators, the agreement will reshape the UK’s broadcasting sector while positioning both Sky and ITV Studios for growth in an increasingly competitive global entertainment market.
SOURCE: BBC
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