Sky has agreed to acquire ITV’s television network operations in a landmark £1.6 billion ($2.1 billion) transaction, marking one of the most significant shake-ups in the British media industry in decades.
The agreement brings together two of the UK’s most influential broadcasters as traditional television companies increasingly pursue consolidation to strengthen their position against global streaming platforms such as Netflix and YouTube.
A New Era for British Television
ITV confirmed the deal to shareholders on Monday, announcing that its television network business will become part of Sky, which operates under NBCUniversal following Comcast’s acquisition of the company in 2018.
The acquisition concludes months of negotiations after ITV disclosed in November that it had received an approach regarding its media and entertainment division.
Industry analysts view the transaction as part of a broader trend in global media, with established broadcasters seeking greater scale to compete for audiences, advertising revenue, and streaming subscribers.
Financial Terms of the Deal
Under the agreement:
- Sky will pay £1.2 billion upfront.
- An additional £200 million will be paid in the first half of 2028, subject to ITV meeting advertising revenue targets of £1.7 billion next year.
- ITV shareholders are expected to receive a cash return of approximately £950 million, equivalent to 25 pence per share.
ITV Studios to Remain Independent
The transaction does not include ITV Studios, the broadcaster’s production and distribution business, which will continue operating as a separate publicly listed company.
As part of the wider arrangement, Sky will transfer Love Productions, the company behind The Great British Bake Off, to ITV Studios in a separate £200 million deal.
In addition, Sky has signed a long-term £2.1 billion content agreement with ITV Studios extending through 2032.
The partnership guarantees continued production of some of ITV’s flagship programmes, including:
- Love Island
- Coronation Street
- I’m a Celebrity…Get Me Out of Here!
The companies confirmed these programmes will continue to be available through ITV rather than moving behind Sky’s subscription platform.
Regulatory Approval Still Required
The acquisition is expected to face detailed scrutiny from UK competition regulators due to the scale of the combined business.
However, industry observers believe changing market conditions may improve the deal’s chances of approval.
Traditional broadcasters have steadily lost advertising market share to major technology companies and digital platforms over recent years.
Combined, Sky and ITV accounted for 18.3% of UK television and streaming viewing in May—slightly below YouTube’s 18.6%, according to audience measurement data from Barb.
Executives Welcome the Combination
Sky Chief Executive Dana Strong described the acquisition as a pivotal moment for the UK’s media landscape.
She said the merger represents an opportunity to build a stronger future for two of Britain’s most recognised broadcasting brands while maintaining ITV’s public service broadcasting responsibilities.
ITV Chief Executive Carolyn McCall expressed confidence that Sky would continue investing in ITV’s future while preserving the broadcaster’s role within Britain’s creative industries.
Strategic Benefits for Both Companies
Founded in 1990, Sky has grown from a satellite television operator into one of Europe’s largest media and telecommunications companies.
ITV, established more than seven decades ago, remains Britain’s largest commercial free-to-air broadcaster, producing and airing some of the country’s most successful entertainment programmes, including Britain’s Got Talent and Love Island, while sharing coverage of the FIFA World Cup with the BBC.
The acquisition gives Sky access to a broadcaster that generated approximately £2 billion in revenue during 2025, with its streaming platform ITVX growing to 16.5 million monthly active users.
For Sky, the purchase strengthens its position beyond pay television by adding one of Britain’s most established public service broadcasters and expanding its advertising and streaming capabilities.
ITV Studios Charts Independent Future
Following the separation, ITV Studios is expected to outline its long-term strategy to investors during a dedicated capital markets event after the transaction closes.
The production company owns numerous successful labels across the UK and internationally, producing scripted dramas, reality entertainment, soaps, and factual programming for broadcasters and streaming platforms worldwide.
Its portfolio includes producers behind major titles such as Love Island, Coronation Street, Emmerdale, and Ludwig, alongside an expanding international production and distribution business.
Industry observers believe ITV Studios could eventually explore strategic partnerships or future merger opportunities as global production companies continue consolidating.
What Happens Next?
The transaction is expected to reshape the UK’s television industry by combining two major broadcasters under one corporate structure while leaving ITV Studios as an independent content producer.
Questions remain over how the merged operation will integrate programming, news operations, leadership structures, and streaming services. Those details are expected to emerge as the companies progress through regulatory review and integration planning.
