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Broadband and media giant Sky UK (Comcast) has this morning confirmed that they’ve “agreed terms” to acquire ITV’s broadcasting business, specifically the company’s Media and Entertainment divisions, which include both their free-to-air TV channels and the ITV X video streaming service for a total consideration of up to £1.6bn (£1.2bn of which is cash).
The deal, which was first rumour last year, reflects the fact that the traditional TV broadcasting business is currently coming under immense pressure from both a rise in the use of video streaming services (Netflix, Prime [Amazon], YouTube, Disney+ etc.) and the future switch-off of digital terrestrial TV services – expected to occur in 2034 or 2044 (licences that support DTTV are already due to expire in 2034) – in favour of streaming TV channels over broadband.
Suffice to say that consolidation and innovation like this may help to balance against that, although such a sale will see the pair controlling around 70% of the UK’s TV advertising market. Such a situation might normally raise a few regulatory red flags, but the rise in competition from streaming services does tend to change that dynamic and ITV did previously forecast that its ad revenues would be 9% lower in the last quarter of 2025 (i.e. Sky’s deal might now be viewed as more of a rescue).
Otherwise, following completion, ITV channels and ITVX will remain free-to-air, with their public service broadcasting commitments continuing to be met, while Sky will continue to be the home of entertainment, sport, and connectivity (mobile and broadband etc.).
The new agreement will also see Sky enter into a £2.1bn content supply agreement over 5 years with ITV Studios upon completion of the deal (ITV Studios itself is not part of Sky’s acquisition). Programming acquired under the agreement will not count towards ITV independent production quotas, helping to ensure continued opportunities for independent producers across the UK.
Dana Strong (CBE), Sky Group CEO, said:
“This is a defining moment for British media and an opportunity to build a stronger future for two of the UK’s most loved and trusted brands. We have huge respect for the transformation the ITV team has delivered, particularly its successful move into streaming through ITVX, which has brought fantastic British content to millions of viewers across the UK.
Bringing Sky and ITV Media & Entertainment together combines the very best of free-to-air television, pay TV and streaming, ensuring viewers across the UK continue to enjoy outstanding British programming in a rapidly changing world.
ITV will remain a public service broadcaster at the heart of British life, and we’re excited about the future we can build together.”
Carolyn McCall (DBE), CEO of ITV plc, said:
“ITV has successfully evolved in a rapidly changing media landscape – launching, and scaling, ITVX and developing ITV Studios into a major force in the global content market. This transaction builds on that momentum to deliver clear, tangible value for shareholders.
At the same time, through the commitments made by Sky, the combined ITV M&E / Sky business will continue to deliver everything about ITV that our viewers and advertisers love and value and our people are hugely proud of – making programmes that reflect and shape society, bringing people together for shared experiences and having the quality, diversity and plurality that are the hallmarks of our contribution to the UK’s creative industries. In addition, all of ITV’s PSB commitments, including regional and national news, are safeguarded under the terms of the Channel 3 Licences until 2034, which Sky is acquiring as part of the Transaction.
I am also confident that Sky will be a strong and responsible custodian of ITV M&E, building on its heritage while investing in its future and safeguarding the qualities that make ITV so valued by viewers, advertisers and the UK’s creative industries.”
Both sides clearly hope that the combined business will have the resources and technology capabilities to compete more effectively in today’s modern streaming focused market, while also delivering approximately £200m in annual cost synergies (on a run-rate basis) by the end of the third year after closing; most of that will come from efficiencies in marketing, technology platforms and non-UK content. But first they’ll need to get all of this past the regulators.
The news follows shortly after Sky’s parent, Comcast, announced its intention to separate their media and technology businesses into public companies through a “tax-free spin-off” of NBCUniversal and Sky (here). The move will create two companies – Comcast and NBCUniversal (existing Comcast shareholders will own shares in both companies).
NBCUniversal will become a global media and entertainment company, consisting of Universal’s film and television studios, NBC and Telemundo networks, Peacock, Bravo and Sky’s UK and European media business (inc. Sky Broadband and Sky Mobile etc.).