Sky buys ITV's entertainment divisions in £1.6 billion media deal

Media giant Sky, now under the ownership of American conglomerate Comcast, is set to acquire the media and entertainment divisions of the UK's ITV network in a landmark deal valued at £1.6 billion.

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a watershed moment for British media.

This significant transaction will see Sky take control of ITV's broadcast channels and its streaming platform, ITVX. Sky's CEO, Dana Strong, described the move as a "watershed moment for British media." The acquisition, which follows takeover talks initiated in November, is expected to grant Sky access to millions of new viewers and establish a formidable rival to major global streaming services.

Notably, the deal excludes ITV Studios, the production arm responsible for popular shows like "Love Island" and "I'm a Celebrity... Get Me Out of Here!". ITV will receive £1.2 billion in cash and Love Productions from Sky, with an additional £200 million contingent on meeting revenue targets by 2028. Sky assured viewers that there would be no immediate changes to popular programming, emphasizing that ITV is legally obligated to provide free-to-air services until at least 2034.

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The British media market is undergoing profound and rapid transformation, and as competition for viewers intensifies, scale matters more than ever to compete with global streaming giants and YouTube in the UK.

Sky highlighted the transformative nature of the British media market, stating that scale is crucial for competing with global streaming giants and YouTube. The company assured that beloved programs such as "Coronation Street," "Emmerdale," and "This Morning" would remain accessible. The transaction awaits regulatory approval, after which ITV Studios will operate as a standalone entity.

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Viewers will continue to enjoy the programs they know and love, such as Coronation Street, Emmerdale, Love Island, I'm a Celebrity... Get Me Out of Here!, This Morning, Loose Women, Lorraine and News at Ten – as well as major live sporting events.