ITV has agreed to offload its media and entertainment division to Sky in a deal valued at up to £1.6 billion, a move poised to significantly reshape the UK television landscape.
The companies involved stated that this acquisition aims to forge a formidable competitor against the world's dominant streaming platforms.
Despite the substantial change, assurances have been made that popular TV programmes will see no immediate alterations, nor will ITV's dedication to public service broadcasting be affected.
We look into the details of the deal and what it could mean for the British public.
What has been announced?
On Monday morning, ITV said it had agreed to sell its media and entertainment division to Sky following months of talks between the two firms to hammer out the terms of a deal.
ITV will get £1.2 billion in cash from the sale and gain ownership of Sky’s Love Productions, which produces the Great British Bake Off and is valued at £200 million, as well as up to £200 million subject to its advertising performance.
The takeover is expected to complete during the second half of 2027 and will need to be approved by regulators.
Who currently owns Sky?
London-based Sky is owned by US media giant Comcast, which also owns NBC and Universal Pictures.
Comcast recently announced plans to split into two companies – one independent Comcast business focusing on telecoms, and a spin-off media operation named NBCUniversal.
Sky and ITV will sit under the NBCUniversal umbrella group.
Which parts of ITV would be included in a deal?
Sky is taking over ITV’s media and entertainment arm – which covers its terrestrial TV channels ITV1, ITV2, ITV4, ITV Quiz and streaming service ITVX.
Sky will also become an indirect 20 per cent shareholder in the ITN business, which makes news programmes such as Good Morning Britain and News at Ten and regional news for London.
All other regional news programmes are made by ITV and are therefore included in the deal.
The sale does not include ITV’s production arm, ITV Studios – which makes shows including Coronation Street, I’m A Celebrity and the popular drama Mr Bates vs The Post Office, and will become a standalone business following the sale.
Nevertheless, Sky has committed to spending at least £2.1 billion over 2028-2032 on content from ITV Studios as part of a long-term agreement to air its shows.
The sale also does not include Scottish media group STV, which is a separate company.
What will happen to ITV after the takeover?
In 2024, ITV committed to a 10-year renewal of its public service broadcasting licences until 2034.
This means that important programmes, including national and regional news, current affairs and prime time content, must remain available to everyone nationwide for free.
Sky pledged to continue to meet the obligations of the licences until they expire. It did not say what would happen after 2034.
There is no immediate impact on staff across both organisations, Sky said.
Can I still watch ITV in the same places?
ITV’s channels and ITVX will remain as they are and free-to-air, including sport content and in places like Freeview, Freely, and Sky’s platforms.
ITV News and Sky News will also remain distinct editorial voices.
Dana Strong, Sky’s group chief executive, said the deal “combines the very best of free-to-air television, pay TV and streaming, ensuring viewers across the UK can continue to enjoy outstanding British programming in a rapidly changing world”.
Programmes produced by ITV Studios, like Love Island, I’m A Celebrity… Get Me Out of Here!, Coronation Street and Emmerdale will be covered in the supply agreement, meaning they will remain on ITV.
Sky will maintain its current pay-to-view model with an array of shows including sport and entertainment.
Why does Sky want to buy the business?
ITV is the UK’s oldest and largest commercial terrestrial television network, as well as running digital channels and a major streaming platform.
A deal will therefore significantly boost Sky’s access to UK viewers, outside its current pay-to-view platforms.
Once the deal is completed, it will also give Sky a very dominant position in the UK’s TV advertising market, giving it a strong position in contract discussions.
What could it mean for viewers in the future?
Analysts have suggested that viewers might see a “cross-pollination” in content between the broadcasters in the future, with it likely to have a particular impact on streaming.
Gill Hind, managing director and director of TV at Enders Analysis, told PA: “ITVX is growing but is still behind iPlayer and Channel 4 in terms of how many of the channels’ viewers use the streaming service.
“There could definitely be streamlining crossover opportunities with Sky able to make their programmes available to ITVX users who wouldn’t usually access their shows.”
She added that there could also be some impact on sports coverage, as it would likely seek to share rights across its public and paid-for channels.
Will regulators allow a deal to take place?
The simple answer is that nobody knows, but the deal is very likely to face some form of investigation by regulators.
Media regulator Ofcom and competition regulator, the Competition and Markets Authority (CMA), are both likely to look at the deal.
The combined group’s potential dominance in the TV advertising space is expected to be a particular focus on any regulatory process.
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