Sky agrees to buy ITV for £1.6 billion – here’s what’s happening to Coronation Street, Emmerdale, Love Island, and sports

Sky has agreed terms to acquire ITV Media & Entertainment from ITV for a total consideration of up to £1.6 billion, in a deal that would fold Britain’s biggest commercial broadcaster into the Comcast-owned pay-TV and connectivity group.

The transaction covers ITV’s UK linear broadcasting and streaming business – ITV1, ITV2, ITV3, ITV4, ITV Quiz and the ITVX streaming service – along with UTV in Northern Ireland.

ITV Studios, the production arm behind much of ITV’s global content business, is not part of the deal and will continue to operate independently.

STV, a separate company that holds the Channel 3 licences in Scotland, is also excluded, and no changes are being proposed to ITV’s networking arrangements with the Scottish broadcaster.

Sky will also become an indirect 20% shareholder in ITN on completion. ITN produces national news programmes including Good Morning Britain and News at Ten, as well as regional news for London.

Key terms

The headline £1.6 billion figure – subject to adjustment for cash, debt and net working capital – comprises £1.2 billion in cash, Love Productions at an agreed value of £0.2 billion, and up to £0.2 billion in performance-related earn-out payments. PJT Partners served as advisor to Comcast on the transaction.

Approximately £200 million in annual cost synergies are expected on a run-rate basis by the end of the third year after closing, with the majority delivered through efficiencies in marketing, technology platforms and non-UK content.

Completion remains subject to customary conditions, including regulatory clearance – a process likely to draw close scrutiny given the scale of the combined business.

Together, Sky and ITV M&E would account for around 20% of all in-home viewing in the UK, second only to the BBC and ahead of YouTube. ITV already reaches around 40 million people every week and serves more than 16.5 million monthly digital users.

Why Sky is buying ITV

In its announcement, Sky explained that the UK media market is undergoing a profound and rapid transformation, and as competition for audiences intensifies, scale matters more than ever in the fight against global streaming giants and YouTube.

The combined business would pair free-to-air broadcasting and advertising-funded streaming with subscription television, alongside Sky’s wider portfolio of broadband, mobile and business services.

This will offer a diversity of revenue streams the companies argue makes for a more resilient and durable model, and a scaled UK-based alternative platform for advertisers.

Dana Strong, Sky Group CEO, called the deal “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,” praising ITV’s move into streaming through ITVX.

“Bringing Sky and ITV Media & Entertainment together combines the very best of free-to-air television, pay TV and streaming,” she said, adding that ITV “will remain a public service broadcaster at the heart of British life.”

Carolyn McCall, ITV Chief Executive, said the transaction “builds on that momentum to deliver clear, tangible value for shareholders,” and that she was “confident that Sky will be a strong and responsible custodian of ITV M&E, building on its heritage while investing in its future.”

What’s happening to the channels

Following completion, ITV M&E will form part of the Sky group, but both companies’ broadcast channels will continue to operate under their existing brands and regulatory licences.

ITV’s channels and ITVX will remain free-to-air and available on platforms including Freeview, Freely, Sky’s platforms, Virgin Media and Freesat.

Sky will maintain in full all current public service broadcasting commitments attached to ITV’s linear services, including regional news, accessibility, and UK production quotas.

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.

ITV’s public service content and ITVX will also benefit from the prominence regime introduced by the Media Act 2024, helping ensure viewers can continue to find ITV’s services easily.

ITV News and Sky News will remain distinct editorial voices, subject to all existing Ofcom requirements. Familiar programming – Coronation Street, Emmerdale, Love Island, I’m a Celebrity, This Morning and News at Ten – will continue, and the combined business says it will deliver more sport free-to-air on ITV services than ever before.

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