ITV is selling its media and entertainment business to Comcast-owned Sky for up to £1.6 billion, following months of talks.
The deal – subject to adjustment for cash, debt and net working capital – comprises of £1.2 billion in cash, Sky’s Love Productions, and up to £ 200 million in performance-related earn-out, subject to customary conditions and regulatory approvals.
The agreement, which began as negotiations in November 2025, will combine the ITV Media & Entertainment division – which includes the ITVX platform and ITV’s free-to-air channels – with Sky.
The goal of the deal is to merge and create a competitor that is able to hold its own against global streamers such as Amazon Prime, Netflix, and YouTube in the UK.
ITV’s free to air UK offering on its ITV channels and ITVX will not be affected by the merger, which will, “remain a public broadcaster,” said Dana Strong, Sky Group CEO.
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 will provide a resilient and durable business model which will underpin its long-term success, Comcast said.
Jonathan Licht, chief sports officer at Sky Sports, stated: “At Sky, we have market-leading sports rights, and are sharing more live sport with our customers, than ever before. This transaction will enable us to go even further, working with our rights holders to make more sport accessible, to more people than ever free-to-air, on ITV. We will have the chance to connect with even more sports fans, all the while continuing to invest in the sports people love. That’s what excites us about the opportunity ahead.”
ITV 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.
However, the deal does not include ITV Studios, which makes popular shows including I’m A Celebrity. ITV Studios will list on the London Stock Exchange when and if the deal is closed and will focus its strategy on becoming a “major force in the global content market,” according to Carolyn McCall, CEO at ITV. It will have a long-term agreement to supply content to the Sky and ITV business.
Sky has committed to spending at least £2.1 billion over 2028 to 2032 on the partnership. Under the terms of the deal, Sky will pay £1.2 billion for the broadcasting unit and sell its Love Productions business to ITV, which makes shows including the Great British Bake Off. Love Productions is supposedly worth £200 million.
If ITV ad sales revenue is strong following the merger, it may receive a payment of £200 million from Sky two years after the deal closes.
The deal is expected to be completed in the second half of 2027.
Sky Group’s Strong said: “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.”
ITV’s McCall commented: “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.”