- Sky to acquire ITV's TV network business in a £1.6 billion deal.
- ITV Studios will remain an independent, London-listed production company.
- Merger signals growing consolidation as broadcasters compete with streaming giants.
British television is heading into one of its biggest shake-ups in decades after Sky agreed to buy ITV's television network and streaming business for £1.6 billion. The Sky-ITV deal, announced on Monday (6), will see one of the UK's oldest commercial broadcasters become part of the NBCUniversal business, as traditional broadcasters look for new ways to compete with streaming platforms such as Netflix and YouTube.
The agreement covers ITV's broadcasting and streaming operations, including ITVX, but excludes ITV Studios, the company's production arm behind programmes such as Love Island, Coronation Street and I'm a Celebrity... Get Me Out of Here!. ITV Studios will become an independent company listed on the London Stock Exchange once the separation is completed.
A new chapter for two TV giants
Under the agreement, Sky will pay £1.2 billion upfront, followed by £200 million in the first half of 2028 if ITV's advertising revenue reaches £1.7 billion next year. ITV shareholders are also expected to receive a cash return of around £950 million, equivalent to 25p per share.
Alongside the main transaction, ITV Studios will acquire The Great British Bake Off producer Love Productions from Sky for £200 million. Sky has also signed a separate £2.1 billion production agreement with ITV Studios until 2032, securing the continued production of several of ITV's biggest programmes. Those shows will remain available on free-to-air television rather than moving behind Sky's subscription service.
The acquisition is still expected to undergo regulatory scrutiny and could take up to 18 months to complete.
The move comes as broadcasters face increasing competition from global streaming platforms. According to official audience data from Barb, Sky and ITV together accounted for 17.7 per cent of television and streaming viewing in May, narrowly behind YouTube's 18.6 per cent share.
Sky chief executive Dana Strong reportedly described the acquisition as "a defining moment for British media", adding that ITV would continue as a public service broadcaster, as quoted in a news report.
ITV Studios prepares to go it alone
While ITV's network business changes hands, ITV Studios is preparing for life as an independent production company.
The studio business generated £2.1 billion in revenue last year, up 5 per cent year-on-year, and now earns more than half of its income outside the UK. It owns more than 60 production companies across 30 markets, producing around 7,000 hours of content annually, while also ranking among the world's largest television format distributors.
Despite industry speculation that ITV Studios could eventually merge with another production company to strengthen its global position, ITV executives insisted the business already has the scale to compete independently.
Chief executive Carolyn McCall reportedly said ITV Studios had grown by around 45 per cent over the past eight years and remained well positioned for future growth. Chief operating officer and finance chief Chris Kennedy reportedly added that the company generates more than half of its revenue outside the UK and has sufficient financial strength to continue expanding through smaller acquisitions rather than pursuing another large-scale merger.
Industry observers are likely to watch closely how the separation reshapes commissioning, production and competition across the UK's television sector. The transaction also raises broader questions over how traditional broadcasters plan to compete as global streaming platforms continue to reshape audience habits.
