Sky, one of Europe’s leading media and connectivity companies and part of Comcast, announced that it has agreed terms to acquire ITV Media & Entertainment from ITV plc for a total consideration of up to £1.6 billion (subject to adjustment for cash, debt and net working capital), comprising £1.2 billion in cash, Love Productions, and up to £0.2 billion in performance-related earn-out, subject to customary conditions and regulatory approvals.
The proposed transaction brings together two of the UK’s most trusted, recognisable and complementary media organisations to create a stronger media business with the reach and capabilities to sustain investment in great British programming, strengthen trusted news and deliver more for audiences.
The UK media market is undergoing a profound and rapid transformation, and as competition for audiences intensifies, scale matters more than ever in order to compete with global streaming giants and YouTube in the UK. Together, Sky and ITV Media & Entertainment will combine free-to-air broadcasting, advertising-funded streaming and subscription television together with Sky’s wider portfolio of broadband, mobile and business services. The diversity of revenue streams of the combined entity provides a resilient and durable business model which will underpin its long-term success.
Following completion, ITV channels and ITVX will remain free-to-air, with its public service broadcasting commitments continuing to be met in full. Audiences will continue to enjoy the programmes they know and love, alongside trusted national and regional news. Sky will continue to be the home of world-class entertainment, unmissable sport, and market-leading connectivity.
ITV already reaches around 40 million people every week and serves more than 16.5 million monthly digital users. Combined with Sky, the business would account for around 20% of all in-home viewing in the UK, second to the BBC and ahead of YouTube, and create a commercial streaming champion for the UK.
Dana Strong (CBE), Sky Group CEO, said:
Carolyn McCall (DBE), Chief Executive Officer, ITV plc, said:
Better for viewers:
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ITV’s channels and ITVX will remain free-to-air, with all public service broadcasting commitments continuing in full, including regional news and programming. Viewers will continue to enjoy the shows they know and love, such as Coronation Street, Emmerdale, Love Island, I’m a Celebrity… Get Me Out of Here!, This Morning, Loose Women, Lorraine and News at Ten – alongside major live sporting events. -
The combined business will deliver more sport free-to-air on ITV services than ever before, while enhancing streaming through improved technology, better discovery and a more seamless viewing experience. -
ITV News and Sky News will remain distinct editorial voices, continuing to provide trusted journalism to audiences across the UK.
Better for the creative sector:
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Sky has agreed to enter into a £2.1bn content supply agreement over 5 years with ITV Studios upon completion of the deal. -
The agreement will support continued investment in British programming while sustaining jobs, skills and growth across the UK’s creative industries. -
Programming acquired under the agreement will not count towards ITV independent production quotas, helping to ensure continued opportunities for independent producers across the UK.
Better for the UK:
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The combined business will have the resources and technology capabilities to compete more effectively with global media and technology companies in the UK, creating a scaled alternative UK-based platform for advertisers. -
The transaction will support continued investment in British content, skills, infrastructure and innovation. -
By combining scale with a continued commitment to public service broadcasting, the transaction helps secure the long-term future of British storytelling, trusted news and culturally significant programming.
Approximately £200 million in annual cost synergies are expected to be generated on a run-rate basis by the end of the third year after closing. The majority of cost synergies will be delivered through efficiencies in marketing, technology platforms and non-UK content.
The transaction is subject to customary conditions and regulatory approvals. Further details will be announced in due course.
Dana Strong (CBE), Sky Group CEO
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), Chief Executive Officer, ITV plc
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.
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