ITV is set for its biggest structural change in decades after agreeing to sell its Media and Entertainment business to Sky in a deal valued at £1.6 billion. If regulators approve the transaction, Sky will take ownership of ITV’s free-to-air television channels and the ITVX streaming service, while ITV Studios will continue as an independent production company listed on the London Stock Exchange.
The proposed deal reflects the growing pressure on traditional broadcasters as audiences increasingly spend time on global streaming services such as Netflix, Amazon Prime Video and YouTube. By combining their television and streaming assets, Sky and ITV aim to strengthen their position in an increasingly competitive media market.
What Sky Will Acquire
The agreement covers ITV’s Media and Entertainment division, giving Sky control of ITV’s portfolio of broadcast channels together with the ITVX streaming platform. According to both companies, ITV’s channels will continue operating as free-to-air services, preserving access for millions of households across the UK.
Popular programmes including Coronation Street, Emmerdale, This Morning, Loose Women, Lorraine, News at Ten, Love Island and I’m a Celebrity… Get Me Out of Here! are expected to remain part of the schedule after the ownership change.
Sky estimates that the combined streaming and television business would reach more than 16 million monthly viewers, creating one of the UK’s largest advertising-supported viewing platforms.
How the £1.6 Billion Agreement Is Structured
Sky will pay £1.2 billion in cash when the transaction completes. A further payment of up to £200 million could follow in 2028 if ITV meets agreed advertising performance targets during 2027.
ITV plans to return around £950 million to shareholders after completion, while setting aside £65 million in escrow to support its pension obligations.
The agreement includes financial safeguards. Sky would owe ITV an £80 million break fee if competition authorities block the acquisition, while ITV would pay £11.5 million if its separate acquisition of Love Productions fails to receive approval.
ITV Studios Will Continue as a Separate Company
The sale does not include ITV Studios, which produces television programmes for broadcasters and streaming platforms in the UK and internationally. Instead, ITV Studios will remain an independent publicly listed company focused on content production.
To support that business after the split, Sky has committed to purchasing at least £2.1 billion worth of programming from ITV Studios between 2028 and 2032. The long-term agreement gives ITV Studios a stable customer while allowing Sky continued access to established British productions.
Love Productions Forms Part of the Wider Restructuring
Alongside the main transaction, Comcast has agreed to sell Love Productions to ITV for £200 million. The production company is best known for creating The Great British Bake Off and The Piano.
The move highlights ITV’s future strategy. Rather than combining broadcasting and production under one business, ITV would become increasingly focused on supplying television content to multiple broadcasters and streaming services.
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Why This Deal Matters for the UK Media Industry
Traditional broadcasters have faced increasing competition as audiences shift toward on-demand viewing and digital platforms. Advertising revenue has become more fragmented, encouraging established media companies to seek greater scale and improved technology.
Sky Chief Executive Dana Strong described the transaction as an important step for British broadcasting. ITV Chair Andrew Cosslett said the agreement would strengthen ITV’s long-term future while supporting its public service broadcasting responsibilities.
Discussions between the two companies first became public in November 2025, making this the outcome of several months of negotiations.
Public Service Broadcasting Commitments Remain
ITV remains legally required to provide public service broadcasting until at least 2034. Those obligations include national and regional news programming, public interest content and wider broadcasting responsibilities overseen by Ofcom.
Sky has said ITV News and Sky News will continue operating as separate editorial organisations. That commitment is expected to receive close regulatory scrutiny because ITV owns a 40% stake in ITN, which supplies news programming for ITV, Channel 4 and Channel 5.
Competition Review Will Be a Key Stage
The acquisition cannot proceed until shareholders approve the transaction and UK regulators complete their reviews. The Competition and Markets Authority is expected to examine whether the deal would reduce competition, while Ofcom will assess public service broadcasting and media plurality requirements.
Because Sky already has a significant presence in pay television, broadband, streaming and news, regulators are likely to carefully examine how adding ITV’s free-to-air channels could affect the wider media landscape.
Potential Savings and Workforce Impact
Sky expects the merger to generate approximately £200 million in annual savings through operational efficiencies. Although no confirmed number of job reductions has been announced, overlapping corporate, commercial and administrative functions could be reviewed as integration progresses.
For employees, advertisers and viewers, the coming regulatory process will determine whether the transaction moves forward. If approved, ITV would become a production-focused company while Sky expands its presence across free television, streaming and advertising in one of the largest UK media deals in recent years.
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