Comcast-owned Sky has agreed to acquire the media and entertainment business of British broadcaster ITV in a deal valued at £1.6 billion ($2.13 billion).
The transaction, marking one of the biggest media consolidation moves in the UK television industry, aims to strengthen the combined company’s ability to compete with global streaming leaders such as Netflix, YouTube, Amazon, and Disney.
Under the agreement, Sky will acquire ITV’s broadcast television channels and its ITVX streaming platform, while ITV Studios will remain an independent production company. ITV Studios will continue producing content for multiple broadcasters and streaming platforms worldwide, including the newly combined Sky-ITV business.
The deal structure includes £1.2 billion in cash, an earn-out of up to £200 million linked to ITV’s advertising performance during the 2027 financial year, and the transfer of Love Productions, the producer behind The Great British Bake Off, to ITV Studios. ITV plans to return approximately £950 million to shareholders following the transaction.
As part of the long-term partnership, the merged Sky-ITV business has committed to spend at least £2.1 billion on programming from ITV Studios between 2028 and 2032, ensuring continued investment in British television content.
Sky does not disclose a single consolidated programming spend figure for its European operations in the way some broadcasters do. Comcast had disclosed a commitment to invest around £11 billion in content, over the five years to 2024, covering original entertainment, movies, news and sports rights. This equates to an average of about £2.2 billion per year.
Sky Chief Executive Dana Strong described the acquisition as a defining moment for British broadcasting, while ITV CEO Carolyn McCall said the merger would strengthen investment in UK-produced content and provide greater value for viewers and advertisers amid growing competition from global streaming services.
The combined company is expected to reach more than 20 million UK households. Industry analysts estimate that Sky and ITV together would control more than 70% of the UK television advertising market, making the transaction subject to detailed antitrust and public-interest reviews. Regulators are expected to closely examine the impact on advertising competition, public service broadcasting, and news operations before granting approval.
Despite the ownership change, ITV will continue to operate as a public service broadcaster under its existing licence until 2034, maintaining commitments to news programming and original British content. Sky has also pledged continued support for Sky News and editorial independence.
The acquisition comes as traditional broadcasters face declining linear TV audiences and increasing competition from digital streaming platforms, prompting media companies to pursue consolidation to achieve greater scale, strengthen advertising capabilities, and expand streaming services. The transaction is expected to complete in the second half of 2027, subject to regulatory approvals.
BABURAJAN KIZHAKEDATH