Sky acquires ITV's media division in a billion-pound deal
Sky acquires ITV's media division in a billion-pound deal
Sky has concluded an agreement to acquire the Media & Entertainment division of ITV, in a transaction that could reach a total value of £1.6 billion including debt. The aim is to strengthen the group's position in the television and streaming sector, increasing competitive capacity against global platforms such as Netflix and YouTube.
The agreement concerns ITV's free-to-air channels and the streaming platform ITVX, while the ITV Studios division will remain independent and continue to operate as a publicly listed company in London. This part of the group will focus on the production and distribution of content for national and international markets.
From an economic standpoint, the deal includes an initial cash payment of approximately £1.2 billion at the time of closing, with an additional £200 million linked to advertising revenue results in 2027. Moreover, the transfer of certain assets will include the transfer of a production asset related to Sky, valued at around £200 million. After transaction costs, ITV is expected to net about £1.05 billion, part of which will be used to reduce debt, while the remainder will be distributed to shareholders. With this operation, ITV will maintain its listing but will become increasingly focused on content production.
Additional details on the Sky and ITV deal
Sky, for its part, commits to invest at least £2.1 billion in content between 2028 and 2032 to ensure production continuity and stability in relations with ITV Studios. The companies have also confirmed that there will be no immediate changes to the most popular programs or major sporting events broadcast.
The operation will need to be approved by the relevant authorities, and closure is expected in the second half of 2027. A central theme concerns advertising, as the new combined structure could come to control a very high share of the television advertising market in the UK, raising potential regulatory interventions.
Finally, ITV maintains obligations related to public service, including free broadcasting until 2034. The parties involved describe the agreement as a response to industry changes, aiming to create a larger and more competitive group in an increasingly platform-dominated market.