Sky, along with its parent company Comcast, is poised to initiate a significant transformation in British broadcasting by agreeing to acquire ITV’s channels and streaming division for US$2.1 billion.
This milestone deal comes after extensive negotiations focused on two main aspects: the separation of ITV’s network from its ITV Studios production and distribution business, and the establishment of a long-term supply agreement benefiting both parties. This agreement ensures Sky has access to essential ITV programming, such as Coronation Street and Love Island, while ensuring ITV Studios receives fair compensation for its content.
The content agreement entails a commitment to spend at least £2.8 billion between 2028 and 2032.
Following the finalisation of these agreements, the path was cleared for the completion of this transaction, particularly since the acquisition price was established as early as November 2025.
Subject to regulatory approval, the deal will:
- Merge ITV Media and Entertainment with Sky to create a more formidable UK media and entertainment powerhouse, promoting investment in content, technology, and the creative industries in the UK.
- Maintain ITV Studios as an independent, publicly listed entity focused on production and distribution.
- Ensure all of ITV’s public service broadcasting obligations, including regional and national news, are preserved under the terms of the Channel 3 Licenses, which Sky will assume as part of this transaction.
The deal is expected to close in the second half of 2027.
Dana Strong, the CEO of Sky, characterised the acquisition as “a defining moment for British media,” presenting a chance to forge a brighter future for two of the UK’s most cherished brands.
“Combining Sky and ITV Media & Entertainment brings together the strengths of free-to-air television, pay TV, and streaming, ensuring audiences across the UK can continue enjoying exceptional British content amid a rapidly evolving landscape,” Strong stated. “ITV will persist as a public service broadcaster central to British life, and we are thrilled about the future we can cultivate together. We hold immense respect for ITV’s transformative journey, particularly its successful entry into streaming with ITVX, providing remarkable British content to millions.”
ITV CEO Carolyn McCall expressed confidence in the collaboration: “Through Sky’s commitments, the integrated ITV M&E and Sky enterprise will keep delivering the content our viewers and advertisers value and that our team takes pride in—creating programs that mirror and shape society, fostering shared experiences, and ensuring the quality, diversity, and plurality that define our contribution to the UK’s creative industries.”
McCall added that ITV’s public service broadcaster obligations, including those for different nations and regional news, would be preserved until 2034 under the Channel 3 Licenses that Sky acquired through this deal.
“I trust that Sky will be a robust and responsible steward of ITV M&E, enhancing its legacy while investing in its future and protecting the qualities that make ITV indispensable to viewers, advertisers, and the UK’s creative sectors,” McCall noted.
Under the agreement, ITV will receive US$1.8 billion, comprising US$2.1 billion in cash and a US$267 million contribution from Sky-owned Love Productions, valued on a cash-and-debt-free basis.
With Comcast’s recently announced planned separation, the Sky-ITV business is set to become part of NBCUniversal once both transactions are finalised.
Upon completion, ITV Studios will evolve into a dedicated global content enterprise, listed in London.
ITV plc anticipates incurring transaction and separation costs of approximately £185 million gross over the next three to four years as it transitions from the integrated business model it has operated under for decades.
The net cash proceeds are expected to approximate £1.05 billion, excluding any contingent considerations.
At the conclusion of the transaction, ITV Studios will enter into a long-term Content Supply Agreement (CSA) with ITV M&E and Sky, covering essential programs such as Coronation Street, Emmerdale, Love Island, I’m a Celebrity, and daytime television programming.
Post-separation, ITV Studios expects to face around £25 million in stranded costs annually, which profits from Love Productions will largely offset.
ITV Chairman Andrew Cosslett stated, “In an era of swift transformations in the industry, it is imperative that we solidify ITV’s vital role as a public service broadcaster, and this transaction enables us to achieve that by merging ITV’s Media and Entertainment division with Sky.”
