Sky to acquire ITV’s broadcast and streaming business in £1.6bn deal to challenge Netflix and global streaming giants

Comcast-owned Sky has agreed to acquire the broadcast channels and streaming platform of ITV in a £1.6 billion ($2.13 billion) deal, marking one of the biggest shake-ups in British media in decades as traditional broadcasters consolidate to compete with global streaming platforms such as Netflix, Amazon Prime Video, Disney+ and YouTube.

The transaction, announced on Monday would combine Britain’s largest commercial free-to-air broadcaster with its biggest pay-TV operator, creating a media powerhouse spanning broadcast television, subscription TV, streaming, advertising, and sports.

Sky Chief Executive Dana Strong described the acquisition as a “defining moment” for the British broadcasting industry, saying the enlarged company would be better positioned to invest in premium British content while competing against technology companies that have dramatically altered viewing habits over the past decade.

“This is a defining moment and one of the biggest in the history of British broadcasting,” Strong said, adding that the deal would enable the combined business to continue delivering “outstanding British programming” as audiences increasingly migrate to digital and on-demand viewing.

She stressed that ITV would continue to fulfil its public service broadcasting obligations despite the change in ownership.

“ITV will remain a public service broadcaster at the heart of British life, and we’re excited about the future we can build together,” she said.

The acquisition is believed to have been orchestrated by the mounting pressure facing traditional broadcasters across Europe as streaming services and digital video platforms continue to capture audiences, advertising revenue, and sports rights. Only a few years ago, a merger between Sky and ITV would have been politically and commercially difficult to imagine. However, the rapid expansion of global streaming services and the growing dominance of online platforms have fundamentally reshaped the television industry.

Consumers are increasingly shifting away from scheduled television toward on-demand viewing. At the same time, advertising budgets have steadily migrated to digital platforms operated by companies such as Alphabet-owned YouTube, Meta, Netflix and Amazon.

The combined Sky-ITV business is expected to strengthen its position by integrating ITV’s mass-market broadcast reach with Sky’s subscription television business, streaming capabilities, broadband services, and premium sports and entertainment offerings.

Advertising Powerhouse Raises Competition Questions

The proposed merger is also likely to attract intense scrutiny from Britain’s competition authorities. According to analysts, the combined company would control more than 70% of the UK’s television advertising market, giving it enormous influence over commercial television advertising.

That level of market concentration is expected to become a central issue during regulatory reviews by the Competition and Markets Authority (CMA) and communications regulator Ofcom, with lawmakers also likely to examine whether the transaction serves the public interest.

The deal may additionally receive political attention because ITV remains one of Britain’s designated public service broadcasters, with statutory obligations covering news, regional programming and public-interest content. Many Members of Parliament maintain close ties with ITV through its longstanding regional broadcasting network, which originated more than 70 years ago as a federation of local franchises serving communities across the United Kingdom.

The political environment has also become more interventionist. Culture Secretary Lisa Nandy recently signaled the government’s willingness to examine major media transactions when she indicated she could intervene in the proposed merger involving Paramount and Warner Bros. Discovery, suggesting regulators could closely examine the Sky-ITV transaction before granting approval.

ITV to Focus On Global Content Production

The agreement significantly reshapes ITV’s business model. Following completion of the transaction, the media giant will effectively become a standalone international production company centered on ITV Studios, one of the world’s largest television production businesses.

ITV Studios already supplies content to broadcasters and streaming services worldwide, producing programmes for the BBC, Netflix, Disney+, Amazon Prime Video and numerous international networks. Its portfolio includes globally recognised programmes such as Love Island, Coronation Street, The Voice, and the hit Disney+ drama Rivals.

Under the terms of the agreement, Love Productions, the producer behind the internationally successful The Great British Bake Off, will also become part of the remaining ITV Studios business, strengthening its position as a global content supplier.

This structure allows ITV Studios to continue producing programming not only for the combined Sky-ITV business but also for competing broadcasters and streaming platforms worldwide, preserving an important source of diversified revenue.

Under the agreed terms, ITV will receive:

• £1.2 billion in cash upon completion.
• An earn-out payment of up to £200 million, linked to the advertising performance of the business during the 2027 financial year.
• Ownership of Love Productions, which will join ITV Studios.

The merged broadcasting business has also committed to investing at least £2.1 billion in programming between 2028 and 2032, underscoring plans to maintain investment in British television production despite broader industry cost pressures.

The commitment is intended to reassure regulators, policymakers, and viewers that domestic programming and public service content will remain central to the combined company’s strategy.

Shares of ITV rose around 1% to 83 pence in early London trading following the announcement, reflecting cautious investor optimism that the transaction unlocks value while allowing ITV Studios to focus on its faster-growing international production business.