Sky To Buy ITV Media & Entertainment

Sky, part of Comcast Corporation, has agreed terms to acquire ITV Media & Entertainment from ITV plc for total consideration of up to £1.6 billion, subject to adjustment for cash, debt and net working capital.

The package comprises £1.2 billion in cash, Love Productions, and up to £0.2 billion in performance-related earn-out, and is subject to customary conditions and regulatory approvals.

The proposed tie-up brings together two of the UK's most recognisable and complementary media organisations, aiming to create a stronger commercial player able to keep investing in British programming, reinforce trusted news provision and deliver more for audiences.

By combining ITV’s free-to-air broadcasting and advertising-funded streaming with Sky's pay TV, broadband, mobile and business services, the enlarged group seeks to compete more effectively with global streaming rivals and YouTube. Together, Sky and ITV Media & Entertainment would account for around 20% of all in-home viewing in the UK, second only to the BBC and ahead of YouTube.

Following completion, ITV’s channels and ITVX will remain free-to-air, with all public service broadcasting obligations met in full, including regional and national news. Viewers will continue to enjoy favourites 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, alongside major live sport. The companies say ITV services will carry more free-to-air sport than ever, with streaming enhanced through improved technology, better discovery and a more seamless experience.

ITV News and Sky News will remain distinct editorial voices, continuing to provide trusted journalism across the UK.

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."