Sky to Acquire ITV’s Network Operations for £1.6 Billion
Sky has agreed to acquire ITV's television network operations for £1.6 billion ($2.1 billion). The deal includes an upfront payment of £1.2 billion, with an additional £200 million payable in the first half of 2028 — contingent on ITV's ad revenue reaching £1.7 billion in 2025.
ITV shareholders will receive a cash return of approximately £950 million (25p per share).
ITV Studios, the broadcaster's production arm, is not part of the acquisition. However, as a side deal, Sky has agreed to sell Love Productions — the producer of The Great British Bake Off — to ITV Studios for £200 million.
Additionally, Sky has secured a £2.1 billion output deal with ITV Studios that runs through 2032.
"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." — Dana Strong, Sky CEO
"I am confident that Sky will be a strong and responsible custodian of ITV." — Carolyn McCall, ITV CEO
Regulatory Approval Required
The transaction is subject to regulatory approval. Their combined TV and streaming viewing share stood at 18.3% in May 2024, compared to YouTube’s 18.6%.
Background
- Sky was founded in 1990 by Rupert Murdoch and acquired by Comcast in 2018 for $39 billion.
- ITV is a 71-year-old public service broadcaster and the largest commercial network in the UK.
Impact
ITV Studios will remain listed in the short term and is expected to hold a capital markets day after the deal closes. Sky and ITV will operate under NBCUniversal, which Comcast is spinning out as a standalone company.