Sky Acquires ITV Media and Entertainment Divisions for £1.6 Billion

Sky is acquiring ITV's media and entertainment divisions for £1.6 billion. The companies announced the transaction on July 6. The sale covers ITV's broadcast channels and its ITVX streaming service. ITV's studio arm, which produces Love Island and I'm a Celebrity, and Scottish broadcaster STV are excluded.

Under the terms, ITV will receive £1.2 billion in cash plus Sky's Love Productions business valued at £200 million. ITV will receive an additional £200 million in 2028 if advertising revenue targets are met. Sky chief executive Dana Strong said popular ITV shows including Coronation Street, Emmerdale, I'm a Celebrity and Love Island will remain free-to-air until at least 2034.

She added that some Sky sports coverage will be made available to watch for free on ITV to build audiences. Strong stated Sky has a five-year deal covering all consumer-loved content from ITV and that the company is happy to support both ITV News and Sky News, though the duration remains uncertain.

ITV chief executive Dame Carolyn McCall said the UK market now offers 800,000 streaming hours compared with 240,000 five years ago.

She described competition for viewers and advertisers as ferocious and said the deal would help both companies invest in British content. The takeover remains subject to regulatory approval from Ofcom and the Competition and Markets Authority. Upon completion, ITV Studios will become a standalone business.

Sky has agreed to spend £2.1 billion on content from ITV Studios over a five-year period. Former ITV chairman Sir Peter Bazalgette said the deal is essential for the survival of UK domestic broadcasters. Dame Caroline Dinenage, chair of the Culture, Media and Sport Committee, said the combined business could have more clout to attract audiences and advertising revenue but noted regulators will examine the transaction closely.