ITV has agreed to sell its media and entertainment business to Sky in a deal valued at £1.6 billion. The agreement remains subject to shareholder and regulatory approval.
The transaction includes ITVX and ITV’s free-to-air channels. ITV Studios, the company’s production business, is not included in the deal.
Sky and ITV are aiming to create the UK’s largest commercial broadcaster. The proposed combination is designed to build a stronger UK-focused streaming and broadcasting platform as domestic media companies face competition from global streaming players including Netflix and Amazon Prime Video.
The integrated streaming platform is expected to have more than 16 million viewers every month. Sky also said the combination could strengthen ITV’s sports offering.
ITV channels carrying major shows such as Coronation Street, Emmerdale, I’m a Celebrity… Get Me Out of Here!, and Love Island are expected to remain free-to-air. Sky has also said ITV’s public service broadcasting commitments will be maintained under the deal.
The transaction also includes content-related commitments to ITV Studios. The combined Sky and ITV entity is expected to spend at least £2.1 billion from 2028 to 2032 to support British programming, production, and creative jobs across the UK.
As part of the broader arrangement, Sky-owned Love Productions is being sold to ITV for £200 million. Love Productions is known for producing The Great British Bake Off.
Sky said ITV News, which is produced by ITN, and Sky News would remain distinct editorial voices. Sky CEO Dana Strong also said ITV’s national, international, and regional news operations would continue.
The deal is expected to draw scrutiny from regulators, including over competition and media plurality. Sky has said about £200 million in annual cost savings could be realized from the acquisition, with some overlap expected in commercial and corporate functions.
For ITV, the transaction separates its broadcast and streaming operations from ITV Studios. For Sky, the deal would add a major UK free-to-air and streaming platform at a time when European broadcasters are seeking greater scale against global digital and streaming competitors.
