Sky has agreed to acquire ITV Media & Entertainment in a deal worth up to £1.6 billion, subject to regulatory approval. The transaction would bring together free-to-air broadcasting, advertising-funded streaming, subscription television and Sky’s broadband, mobile and business services operations under a single umbrella.
Sky Group CEO Dana Strong described the agreement as “a defining moment for British media”, highlighting the opportunity to build a stronger future for two of the UK’s most established and trusted brands.
Owned by Comcast, Sky believes the acquisition will create a UK-focused media powerhouse capable of competing with global streaming giants such as Netflix and YouTube. At the center of this strategy is ITV’s streaming platform, ITVX.
The company plans to invest in ITVX’s streaming technology and content discovery capabilities, transforming it into an even stronger digital destination for viewers and sports fans alike. ITV currently reaches around 40 million viewers each week and attracts approximately 16.5 million monthly digital users. Combined with Sky’s audience, the new entity would account for nearly 20% of all in-home viewing in the UK, surpassing YouTube and trailing only the BBC.
ITV CEO Carolyn McCall said the broadcaster has successfully adapted to the rapidly evolving media landscape, expanding ITVX and turning ITV Studios into a significant player in the global content market.
Under the terms of the agreement, Sky will pay approximately £1.2 billion in cash, alongside the transfer of Love Productions and a performance-related earn-out of up to £200 million.
Although ITV Studios is not included in the acquisition, Sky has secured a separate five-year content supply agreement worth £2.1 billion with the production arm.
The deal also preserves ITV’s public service broadcasting obligations, including regional and national programming requirements, which are expected to remain in place through 2034. ITV channels and ITVX will continue to be available free of charge.
The combined company expects to generate around £200 million in annual cost synergies within three years, driven by efficiencies in marketing, technology infrastructure and international content spending.
Impact on sports broadcasting
Sky has pledged to deliver “more free-to-air sport than ever before” as part of the merger.
While premium properties such as the Premier League and Formula 1 are expected to remain within existing pay-TV structures, the transaction could open the door to wider free-to-air distribution of selected major events, highlights packages and complementary sports content through ITV’s platforms.
The commitment comes at a time when access to live sport in the UK is facing increasing scrutiny, with more events moving behind subscription paywalls.
Sky has previously experimented with limited free-to-air sports offerings, making selected ICC Women’s T20 World Cup matches available through Sky Mix, the Sky Sports app and YouTube.
If approved, ITVX is expected to become the primary destination for distributing free-to-air and partially free sports content across the combined group, further strengthening its position in the UK’s evolving streaming landscape.