Sky makes ITV acquisition official

Together, Sky and ITV Media & Entertainment will combine free-to-air broadcasting, advertising-funded streaming and subscription television with Sky’s wider portfolio of broadband, mobile, and business services.

The offer is subject to adjustment for cash, debt and net working capital and comprises £1.2bn in cash for Love Productions, and up to £0.2bn in performance-related earn-out, subject to customary conditions and regulatory approvals. 

The deal is intended to provide scale and security to help the organisations compete with global streaming giants and YouTube in the UK. ITV already reaches around 40 million people every week and serves more than 16.5 million monthly digital users. Combined with Sky, the business would account for around 20% of all in-home viewing in the UK, second to the BBC and ahead of YouTube. 

According to the organisations, ITV News and Sky News will remain distinct editorial voices, continuing to provide trusted journalism to audiences across the UK. Following completion, ITV channels and ITVX will remain free-to-air, with its public service broadcasting commitments continuing to be met in full.  This means viewers will continue to have access to Coronation Street, Emmerdale, Love Island, I'm a Celebrity... Get Me Out of Here!, This Morning, Loose Women, Lorraine, and News at Ten – alongside major live sporting events.

The combined business is projected to deliver more sport free-to-air on ITV services than ever before, while enhancing streaming through improved technology and better discovery.

The transaction will reportedly support continued investment in British content, skills, infrastructure, and innovation by creating a scaled UK-based platform for advertisers. Further, approximately £200m in annual cost synergies are expected to be generated on a run-rate basis by the end of the third year after closing. The majority of these cost synergies will be delivered through efficiencies in marketing, technology platforms, and non-UK content. 

With these savings in hand, Sky has also agreed to enter into a £2.1bn content supply agreement over five years with ITV Studios upon completion of the deal. The agreement is to support continued investment in British programming while sustaining jobs, skills, and growth across the UK's creative industries. Programming acquired under the agreement will not count towards ITV independent production quotas, helping to ensure continued opportunities for independent producers across the UK.

Dana Strong, CEO of Sky Group, 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 at ITV, added: “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. 

“At the same time, through the commitments made by Sky, the combined ITV M&E / Sky business will continue to deliver everything about ITV that our viewers and advertisers love and value and our people are hugely proud of – making programmes that reflect and shape society, bringing people together for shared experiences and having the quality, diversity, and plurality that are the hallmarks of our contribution to the UK’s creative industries. In addition, all of ITV’s PSB commitments, including regional and national news, are safeguarded under the terms of the Channel 3 Licences until 2034, which Sky is acquiring as part of the transaction. 

“I am also confident that Sky will be a strong and responsible custodian of ITV M&E, building on its heritage while investing in its future and safeguarding the qualities that make ITV so valued by viewers, advertisers and the UK's creative industries.”

Potential buyers first began circling ITV in 2024, according to a report by Sky News. Discover more here.