Sky has agreed a £1.6 billion deal to acquire the media and entertainment divisions of ITV in one of the biggest takeovers in British media history.
The deal includes ITV’s broadcast channels and its ITVX streaming platform, with the companies saying the move will create a stronger competitor to global streaming services.
Sky Chief Executive Dana Strong described the acquisition as “a defining moment for British media”.
The transaction follows takeover discussions which began in November last year between Sky and ITV, with Sky owned by US media giant Comcast.
ITV Studios, the production arm behind programmes including Love Island and I’m a Celebrity… Get Me Out of Here, is not included in the agreement.
In a statement, Sky said: “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.”
The company said viewers would continue to enjoy programmes including 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.
Under the terms of the agreement, ITV will receive £1.2 billion in cash and Sky’s Love Productions business, valued at £200 million. ITV will also receive an additional £200 million in 2028 if advertising revenue targets are met.
Sky also said it had committed to spending £2.1 billion on content from ITV Studios over the next five years.
Chief Investment Strategist at Wealth Club, Susannah Streeter, described the transaction as a “significant step in the reshaping of Europe’s media landscape”.
She said: “Traditional broadcasters are having to change tactics fast in the battle for audiences whose attention is increasingly fragmented across streaming platforms, social media and online video, making advertising revenues harder to sustain.”
Streeter added that the challenge would be ensuring that efforts to reduce costs do not come “at the expense of the creative talent, editorial experience and institutional knowledge that have underpinned both organisations’ success.”
Faridah Abdulkadiri
