Published on: July 6, 2026
Sky has reached an agreement to acquire ITV Media & Entertainment from ITV plc in a transaction valued at up to £1.6 billion, subject to regulatory approvals and customary closing conditions.
The proposed deal includes £1.2 billion in cash, the transfer of Love Productions, and up to £200 million in performance-based earn-out payments, with final adjustments based on cash, debt, and working capital at completion.
The acquisition aims to combine two of the UK’s most established media businesses, creating a larger organisation capable of competing more effectively in an increasingly competitive media environment shaped by global streaming platforms and digital content providers.
By bringing together Sky’s subscription television, broadband, mobile and business services with ITV’s free-to-air broadcasting and advertising-supported streaming platform, the combined business will benefit from multiple revenue streams designed to support long-term growth and continued investment in British content.
Following completion, ITV channels and ITVX will remain free-to-air, while ITV will continue to fulfil all of its public service broadcasting obligations, including national and regional news programming. Sky will continue offering its portfolio of entertainment, sports and connectivity services.
ITV currently reaches around 40 million viewers each week and serves more than 16.5 million monthly digital users. Together, Sky and ITV Media & Entertainment are expected to account for approximately 20% of in-home television viewing in the UK, positioning the combined business behind only the BBC and ahead of YouTube.
Dana Strong (CBE), Sky Group CEO, 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.”
Carolyn McCall (DBE), Chief Executive Officer, ITV plc, said: “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.”
According to both companies, the merger is expected to benefit audiences by preserving ITV’s free-to-air services while increasing the availability of live sports and enhancing the streaming experience through improved technology and content discovery. ITV News and Sky News will continue operating as separate editorial organisations.
The transaction is also expected to support the UK’s creative economy. Sky has committed to a £2.1 billion content supply agreement with ITV Studios over five years following completion, helping sustain investment in British programming while supporting employment, skills development and production across the sector.
Additionally, the combined business is expected to strengthen the UK’s media industry by creating a larger domestic platform capable of competing more effectively with international media and technology companies.
Sky estimates annual cost synergies of approximately £200 million by the end of the third year after the transaction closes, primarily through efficiencies across marketing, technology platforms and international content acquisition.
The acquisition remains subject to regulatory approval and other customary closing conditions.
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