Sky and parent Comcast are set to enact the biggest shake-up of British broadcasting in a generation after agreeing a £1.6bn takeover of ITV’s channels and streaming business.
The agreement has been reached after months of protracted negotiations that centred on two key areas: separating the network part of ITV from the ITV Studios production/distribution business, including which elements of its people, buildings, resources and assets transfer to Sky; and a long-term supply deal agreement with ITV Studios that works for both parties, giving Sky certainty over key ITV shows such as Coronation Street and Love Island, and ITVS a fair price for such essential content.
The content deal is for a minimum spend commitment of £2.1bn between 2028-32.
Once those agreements were formalised it cleared a path for the deal to complete, especially since the £1.6bn price was agreed as far back as November 2025.
Pending regulatory approval, the deal will:
- Combine ITV M&E and Sky to create “a scaled UK media and entertainment company, supporting investment in content, technology and the UK creative industries”
- Leave ITV Studios as a standalone, listed company focused on production and distribution
- Enables a cash return to ITV shareholders of around £950m
- Love Productions will move to ITV Studios for an agreed enterprise value of £200m
- All of ITV’s PSB commitments, including nations, regional and national news, are safeguarded under the terms of the Channel 3 Licences, which Sky is acquiring as part of the transaction
The deal is expected to complete in the second half of 2027.
Dana Strong, Sky’s group chief executive officer called the deal “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”.
“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. 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.”
ITV chief exec Carolyn McCall said: “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 nations, 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 confident 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.”
Under the deal, ITV will receive £1.4bn comprising £1.2bn in cash and the contribution of Sky-owned Love Productions, which is valued at £200m on a cash-and-debt-free basis.
ITV may also receive cash payment of £200m if ITV’s total advertising revenue exceeds £1.7bn for the full year of 2027.
Following Comcast’s planned separation, announced last week, the Sky-ITV business is expected to form part of NBCUniversal upon completion of both transactions.
ITV Studios
Following the deal’s completion, ITV Studios is to become a pure-play global content business with a listing in London.
ITV plc will incur a transaction and separation costs of approximately £185m gross (£155m net of tax) over the next three or four years as cost of separating from the business which has been integrated for decades.
Net cash proceeds are expected to be approximately £1.05bn excluding any contingent consideration.
At completion of the Transaction, ITV Studios will enter into a long-term Content Supply Agreement (known as the “CSA”) with ITV M&E and Sky. This deal covers key programmes including its soaps Coronation Street and Emmerdale as well as Love Island, I’m a Celeb and daytime TV programming.
After separation, ITV Studios will incur around £25 million of stranded costs per annum, which will be broadly offset by the contribution of Love Productions profit.
ITV’s chairman Andrew Cosslett said: “At a time of rapid change in the industry, it is right that we now secure ITV’s crucial role as a Public Service Broadcaster and this transaction achieves this with ITV’s Media and Entertainment division combining with Sky to create a UK champion with the scale and resources to better compete with global streaming platforms.”
With the sale delivering significant cash return to shareholders, Cosslett added: “the transaction also unlocks the value of ITV Studios which post completion will be a distinctive pure-play global content business”.
This story first appeared on Screen’s sister site Broadcast
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