Sky to buy ITV’s channels and streaming for £1.6bn

Sky has agreed to acquire ITV’s broadcast channels and streaming service for £1.6 billion in a transaction announced on Monday. The purchase would combine the UK’s largest free-to-air commercial broadcaster with a major pay-TV operator. Completion requires approvals from competition authorities and a parliamentary review.

Under the terms, Sky will pay £1.2 billion in cash at completion and ITV could receive up to an additional £200 million through an earn-out tied to the broadcaster’s advertising performance in 2027.

The companies estimate the combined group would reach more than 20 million UK households. They have committed to invest at least £2.1 billion in programming between 2028 and 2032.

Regulators will examine competition and media plurality. Including third-party advertising sales that Sky currently manages, the combined entity would handle more than 70% of the UK television advertising market, the firms noted. To address concerns, Sky may be required to divest some third-party advertising sales contracts.

The government updated guidance in 2025 that asks regulators to consider economic growth and investment when assessing large deals. Culture Secretary Lisa Nandy has signalled a willingness to intervene in high-profile media transactions.

ITV will remain a standalone production business. ITV will retain ITV Studios and acquire Love Productions, the producer of The Great British Bake Off. Those production units will continue to make programmes for the combined company and to sell shows to other broadcasters and streaming services worldwide, including flagship titles such as Love Island and Coronation Street.

The announcement follows a period of weak advertising revenues at ITV. The broadcaster’s shares rose modestly in early trading after the deal was announced but have declined about 36% over the past five years. Sky was bought by Comcast in 2018; Comcast has since proposed separating its cable business from media assets that include Sky.

Dana Strong, chief executive of Sky, described the acquisition as a ‘defining moment’ for British broadcasting and said the combined group would deliver ‘outstanding British programming’, adding that ‘ITV will remain a public service broadcaster at the heart of British life.’