Sky, the Comcast-owned television, broadband, and mobile provider, has reached an agreement to purchase ITV's media and entertainment division for up to £1.6 billion (€1.87 billion). The transaction, which follows months of negotiations, aims to create a formidable competitor to global streaming services such as Netflix and Amazon Prime Video.
The deal comprises £1.2 billion (€1.4 billion) in cash, the transfer of Love Productions, and up to £200 million (€233.8 million) in performance-related payments, according to an official statement. ITV's terrestrial channels and its streaming service, ITVX, will be folded into Sky's operations, while ITV Studios—the production arm behind hits like I'm a Celebrity…Get Me Out of Here!—will remain an independent entity.
A UK Champion for Streaming
ITV chairman Andrew Cosslett described the transaction as a move to “create a UK champion with the scale and resources to better compete with global streaming platforms.” The combined entity will bring together free-to-air television, advertising-funded streaming, and subscription TV, alongside Sky's broadband, mobile, and business services, diversifying revenue streams in a rapidly consolidating market.
ITV reaches approximately 40 million viewers weekly and boasts over 16.5 million monthly digital users. The statement notes that the merged business would account for around 20% of all in-home viewing in the UK, second only to the BBC and ahead of YouTube, positioning it as a commercial streaming champion for the country.
The companies expect the combination to generate roughly £200 million in annual cost savings by the end of the third year after completion, primarily through efficiencies in marketing, technology platforms, and non-UK content. Sky has also committed to a five-year, £2.1 billion content supply agreement with ITV Studios, ensuring a steady pipeline of programming.
Following the completion of its split from Comcast, the combined Sky-ITV entity will become part of NBCUniversal. ITV News and Sky News will maintain editorial independence, preserving distinct journalistic voices.
ITV shares, listed on the London Stock Exchange, rose more than 1% in early afternoon trading on Monday, reflecting investor confidence in the deal's strategic logic.
This consolidation comes as European media companies seek scale to compete with US tech giants. For context, the EU's push for tech sovereignty has seen high-tech sales reach €414 billion in 2024, highlighting the continent's ambition to bolster its digital economy. Meanwhile, the EU's top court upheld a €4.1 billion fine against Google over Android antitrust violations, underscoring regulatory efforts to level the playing field for European players.
The deal is subject to regulatory approval, but if cleared, it will reshape the UK's media landscape, merging two of the country's most recognizable broadcasters into a single, multi-platform powerhouse.
