Sky Agrees to Acquire ITV Media and Entertainment to Create UK Commercial Streaming Champion

Sky, a subsidiary of Comcast, has reached an agreement to acquire ITV Media & Entertainment from ITV plc for a total consideration of up to £1.6 billion. The deal combines Sky’s pay-TV and broadband services with ITV’s free-to-air broadcasting and its ITVX streaming platform to better compete against global giants like YouTube and Netflix. This strategic move aims to create a scaled commercial streaming entity in the UK that will account for approximately 20% of all in-home viewing. The transaction includes a significant content supply agreement and safeguards for ITV’s public service broadcasting obligations through 2034.

Sky will acquire ITV’s UK linear broadcasting and streaming business, including ITVX and channels such as ITV1, ITV2, and UTV, for £1.2 billion in cash plus the transfer of Love Productions and a £0.2 billion performance-related earn-out. While ITV Studios is excluded from the sale and will remain independent, Sky has committed to a £2.1 billion content supply agreement over five years with the production arm to ensure a steady flow of British programming. The deal also sees Sky becoming an indirect 20% shareholder in ITN, which produces major news programs like Good Morning Britain and News at Ten.

The merger is positioned as a necessary response to the rapid transformation of the UK media market, where scale is increasingly vital to challenge global streaming platforms. By combining ITV’s reach of 40 million weekly viewers and 16.5 million monthly digital users with Sky’s existing portfolio, the new entity will become the second-largest broadcaster in the UK by viewing share, trailing only the BBC and moving ahead of YouTube. Leadership from both companies emphasized that the integration of free-to-air, subscription, and advertising-funded models provides a resilient revenue base capable of sustaining long-term investment in local content and infrastructure.

Under the terms of the agreement, ITV’s public service broadcasting (PSB) commitments are protected until 2034, ensuring that ITVX and its linear channels remain free-to-air and continue to provide national and regional news. Sky and ITV News will maintain distinct editorial voices, and the combined business expects to deliver more free-to-air sports coverage than previously available on ITV services. Operationally, the companies anticipate generating approximately £200 million in annual run-rate cost synergies by the third year post-closing, primarily through efficiencies in marketing, technology platforms, and non-UK content procurement.