ITV’s UK version of Love Island
Pay TV operator Sky has agreed to buy UK commercial broadcaster ITV’s Media & Entertainment (M&E) business for a total of up to £1.6bn (US$2.16bn), in a deal that will see ITV Studios emerge as a standalone content business listed in London.
Sky, part of US media giant Comcast, will acquire ITV M&E in a deal expected to complete in the second half of 2027, subject to regulatory approval. Following Comcast’s planned separation, Sky and ITV M&E will form part of NBCUniversal once both deals have completed.
Under the agreement, ITV will receive £1.4bn, made up of £1.2bn in cash and Sky’s Love Productions, the label behind The Great British Bake Off and The Piano, which is valued at £200m on a cash-and debt-free basis.
ITV could also receive an additional £200m, payable in the second half of 2028, should its total advertising revenue exceed £1.7bn for the 2027 financial year, subject to certain trading balance adjustments.
The deal does not include ITV’s production and distribution arm ITV Studios (ITVS), which will operate as a separate, stand-alone business and list on the London Stock Exchange.
ITVS will enter into a long-term content supply agreement with ITV M&E and Sky, covering programmes and formats including Coronation Street, Emmerdale, Love Island, I’m a Celebrity… Get Me Out of Here! and its daytime slate. The agreement includes a minimum spend commitment of £2.1bn running from 2028 to 2032.
Programming acquired under that agreement will not count towards ITV’s independent production quotas which it will continue to abide by, along with all its other public service broadcaster commitments.
ITV said its PSB licences, renewed for 10 years in 2024, remain in place until 2034, ensuring continued free access to nations, regions and national news, current affairs and UK content at peak time. Sky has committed to continuing to deliver all of ITV’s PSB licence obligations through to expiry.
Talks between the pair were first confirmed last November. A deal has taken so long to come to fruition partly because of the complexity of separating ITVS from the wider group.
ITV chairman Andrew Cosslett said the agreement secures the broadcaster’s long-term public service role:
“For over seven decades, ITV has played an important and cherished role in the public life of the nation. At a time of rapid change in the industry, it is right that we now secure ITV’s crucial role as a public service broadcaster and this transaction achieves this with ITV’s Media & Entertainment division combining with Sky to create a UK champion with the scale and resources to better compete with global streaming platforms,” he said.
“At a headline value of up to £1.6bn, the sale of ITV’s M&E division will deliver a significant cash return to shareholders. Crucially, the transaction also unlocks the value of ITV Studios, which post-completion will be a distinctive pure-play global content business, with a strong track record of success and excellent prospects, further underpinned by a long-term partnership with ITV M&E and Sky.”
ITV chief executive Carolyn McCall 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.
“I am 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.”
Sky group chief executive Dana Strong added: “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.”
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‘ Some details of this article were extracted from the following source www.c21media.net ’
