<\/p>\n
\n\tIt\u2019s finally official. Comcast-owned U.K. pay-TV operator Sky<\/a> has agreed to acquire ITV<\/a>\u2018s Media and Entertainment business for total consideration of up to \u00a31.6 billion ($2.14 billion).<\/p>\n \n\tThe deal, expected to close in the second half of 2027, will separate ITV Studios into a standalone global content business and return roughly \u00a3950 million ($1.27 billion) to shareholders.<\/p>\n \n\tThe consideration comprises \u00a31.2 billion ($1.61 billion) in cash at completion, the contribution of Sky\u2019s Love Productions \u2013 maker of \u201cThe Great British Bake Off\u201d and \u201cThe Piano\u201d \u2013 valued at \u00a3200 million ($268 million), and up to \u00a3200 million ($268 million) in contingent payments payable in the second half of 2028, tied to advertising revenue performance in fiscal 2027. Sky is fully owned by Comcast, and both Sky and ITV\u2019s M&E business are expected to become part of NBCUniversal once Comcast\u2019s planned separation is complete.<\/p>\n \n\tNet cash proceeds from the sale are projected at approximately \u00a31.05 billion ($1.4 billion) after roughly \u00a3185 million ($247 million) in transaction and separation costs. ITV plans to use the proceeds first to reduce ITV Studios\u2019 leverage to around 1.5 times net debt to EBITDA, then return about \u00a3950 million ($1.27 billion) to shareholders, equivalent to 25p per share, excluding any contingent consideration.<\/p>\n \n\tAs part of the transaction, ITV Studios will sign a long-term content supply agreement with ITV M&E and Sky covering shows including \u201cCoronation Street,\u201d \u201cEmmerdale,\u201d \u201cLove Island,\u201d \u201cI\u2019m a Celebrity\u2026Get Me Out of Here!\u201d and its daytime slate, with a guaranteed minimum spend totaling \u00a32.1 billion ($2.81 billion) between 2028 and 2032.<\/p>\n \n\tAndrew Cosslett, chair of ITV plc, said: \u201cFor 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\u2019s crucial role as a public service broadcaster and this transaction achieves this with ITV\u2019s Media and Entertainment division combining with Sky to create a U.K. champion with the scale and resources to better compete with global streaming platforms.\u201d<\/p>\n \n\tCarolyn McCall, chief executive officer of ITV plc, added: \u201cI 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 U.K.\u2019s creative industries.\u201d<\/p>\n \n\tMcCall framed the transaction as a continuation of ITV\u2019s move into streaming through ITVX and its growth into a major global content producer. All of ITV\u2019s public service broadcasting commitments, including nations, regional and national news, remain protected under the Channel 3 licenses that Sky is acquiring, which run until 2034.<\/p>\n \n\tDana Strong, group chief executive officer of Sky, said: \u201cThis is a defining moment for British media and an opportunity to build a stronger future for two of the U.K.\u2019s most loved and trusted brands.\u201d<\/p>\n \n\tStrong said the deal reflects respect for ITV\u2019s push into streaming through ITVX and unites the different ways British audiences watch television under one roof.<\/p>\n \n\t\u201cBringing Sky and ITV Media & Entertainment together combines the very best of free-to-air television, pay-TV and streaming, ensuring viewers across the U.K. 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\u2019re excited about the future we can build together,\u201d Strong said.<\/p>\n \n\tThe transaction values ITV M&E at an EV\/EBITDA multiple of approximately 5.6 to 6.4 times 2025 earnings, in line with recent precedent deals, according to ITV. Post-completion, ITV Studios is expected to operate with adjusted EBITA margins of 13 to 15% and average profit-to-cash conversion of roughly 80%, and the company plans to hold a Capital Markets Day before the deal closes to detail its standalone strategy. The transaction requires regulatory approval and is not subject to shareholder approval under U.K. Listing Rules.<\/p>\n<\/div>\n \u2018 The preceding article may include information circulated by third parties \u2019 <\/em><\/p>\n \u2018 Some details of this article were extracted from the following source variety.com \u2019 <\/em><\/p>\n","protected":false},"excerpt":{"rendered":" It\u2019s finally official. Comcast-owned U.K. pay-TV operator Sky has agreed to acquire ITV\u2018s Media and Entertainment business for total consideration of up to \u00a31.6 billion ($2.14 billion). The deal, expected to close in the second half of 2027, will separate ITV Studios into a standalone global content business and return roughly \u00a3950 million ($1.27 billion) […]<\/p>\n","protected":false},"author":2,"featured_media":2489852,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"jnews-multi-image_gallery":[],"jnews_single_post":[],"jnews_primary_category":[],"jnews_social_meta":[],"footnotes":""},"categories":[25172],"tags":[27065,305342],"class_list":["post-2489851","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-entertainment","tag-itv","tag-sky"],"jetpack_featured_media_url":"https:\/\/celebrity.land\/en\/wp-content\/uploads\/2026\/07\/Sky-to-Buy-ITVs-Media-Arm-for-Up-to-21.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2489851","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/comments?post=2489851"}],"version-history":[{"count":1,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2489851\/revisions"}],"predecessor-version":[{"id":2489853,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/posts\/2489851\/revisions\/2489853"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media\/2489852"}],"wp:attachment":[{"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/media?parent=2489851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/categories?post=2489851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/celebrity.land\/en\/wp-json\/wp\/v2\/tags?post=2489851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}