Sky Snaps Up ITV’s Broadcast Business in £1.6 Billion Mega-Deal

Sky has agreed to buy ITV’s Media & Entertainment division in a landmark £1.6 billion transaction that will reshape Britain’s television landscape.

The deal, unveiled on Monday, will merge Sky’s pay-TV and streaming services with ITV’s free-to-air channels and ITVX platform, creating the country’s biggest commercial broadcaster. The move comes as traditional media firms scramble to keep pace with streaming behemoths like Netflix, Amazon Prime Video and Disney+.

Sky will fork out £1.2 billion upfront, with another £200 million dependent on ITV’s advertising performance in 2027. Separately, ITV is buying ‘The Great British Bake Off’ producer Love Productions from Sky for around £200 million.

Notably, ITV Studios—the powerhouse behind ‘Love Island’, ‘I’m A Celebrity’ and the acclaimed ‘Mr Bates vs The Post Office’—will remain a standalone listed company. However, Sky has pledged to spend at least £2.1 billion on content from ITV Studios between 2028 and 2032, guaranteeing a steady supply of hit shows.

The acquisition reflects the intense battle traditional broadcasters face against US streaming giants eating into their audience and advertising revenue. By combining Sky’s subscription model with ITV’s free-to-air reach and streaming platform, the merged entity aims to create a formidable competitor.

ITV Chairman Andrew Cosslett called the deal a chance to build a stronger, more competitive British media business while maintaining ITV’s public service obligations.

The sale should complete in the second half of 2027, pending regulatory approval. ITV plans to return around £950 million to shareholders once the deal closes and will set aside £65 million for its pension scheme.