Sky makes £2bn spending pledge as it prepares takeover of ITV broadcasting arm

Sky is poised to invest £2 billion in ITV's studios business over the next five years, signaling a significant commitment as it negotiates the takeover of ITV's broadcasting arm. This substantial spending pledge is intended to safeguard the future of beloved British programs, including the long-running soap opera "Coronation Street" and the reality hit "Love Island."

The potential £1.6 billion deal, which could be announced as early as July, involves a complex restructuring. Sky, owned by US company Comcast, is in talks to acquire ITV's media and entertainment operations, encompassing its UK free-to-air channels and the ITVX streaming platform. However, ITV Studios, a major global production company responsible for shows like "I'm a Celebrity... Get Me Out of Here!" and "Mr Bates vs the Post Office," will remain a standalone entity listed on the London Stock Exchange.

ITV Studios, which generated over half of ITV's £4.1 billion annual revenues in 2025, is a significant player in the production landscape. Sky, already a commercial partner that buys shows from ITV Studios, has agreed to this future spending commitment, which a source described as a continuation of an existing arrangement rather than new money. This investment is expected to stabilize the business and ensure the continued production of numerous popular shows.

Analysts anticipate that Sky's acquisition of ITV's broadcast and streaming divisions could lead to job cuts aimed at eliminating redundancies. Sky's overarching goal is to establish a dominant UK streaming service by integrating ITVX, the nation's largest free, ad-supported platform, to compete with established subscription services like Netflix and Amazon Prime. The deal is expected to face regulatory scrutiny from the UK's Competition and Markets Authority and Ofcom, particularly concerning Sky News' potential ownership of ITV's stake in ITN, the producer of several major UK news programs.

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Sky has committed to spending £2bn on ITV’s studios business over the next five years as it hammers out a takeover of its broadcasting arm, a move that will safeguard the future of popular programmes such as Coronation Street and Love Island.