Sky, owned by US telecoms giant Comcast, has finalised a £1.6bn deal to acquire ITV’s broadcasting and streaming division, forming the UK’s largest commercial broadcaster. The long-anticipated transaction involves an initial cash payment of £1.2bn for ITV’s media and entertainment business, which encompasses its free-to-air television channels and the ITVX streaming platform. An additional payment of up to £200m is scheduled for the second half of 2028, contingent on 2027 advertising revenues.
Love Productions Sale and Strategic Partnership
As part of the agreement, Comcast will sell Love Productions, the company behind The Great British Bake Off, to ITV for £200m. The two entities had been in negotiations for months to finalise the complex deal. Importantly, the transaction excludes ITV Studios, one of the world’s largest production companies responsible for hits like Love Island, I’m a Celebrity…Get Me Out of Here!, and the drama Mr Bates vs the Post Office.
Sky has committed to investing at least £2.1bn in the acquired business between 2028 and 2032 as part of a long-term strategic partnership. This investment aims to bolster the combined entity’s competitive edge against global streaming platforms.
Leadership Commentary
Andrew Cosslett, ITV’s chair, stated: “For over seven decades, ITV has played an important and cherished role in the public life of the nation. At a time of rapid change in the industry, it is right that we now secure ITV’s crucial role as a public service broadcaster and this transaction achieves this with ITV’s media and entertainment division combining with Sky to create a UK champion with the scale and resources to better compete with global streaming platforms.”
The deal marks a significant consolidation in the UK broadcasting landscape, combining Sky’s satellite and broadband services with ITV’s terrestrial channels and digital platform. Further details are expected to emerge as the transaction progresses.
