The American owner of Sky has agreed a £1.6 billion deal to acquire the broadcast arm of ITV.
The deal, which includes ITV’s free-to-air channels and on-demand streaming service ITVX, creates the UK’s biggest commercial broadcaster.
ITV plc said US telecoms giant Comcast had agreed to sell Sky’s Love Productions business to ITV Studios as part of the package.
ITV Studios, one of the world’s biggest production companies – behind shows including I’m a Celebrity… – will remain listed on the London Stock Exchange.
The transaction, expected to complete in H2 2027, is for an initial cash consideration of £1.2bn. It values Love Productions – which makes Great British Bake Off and The Piano – at £200m, while a further £200m may be payable in H2 2028, subject to total advertising revenue performance in FY 2027 and certain trading balance adjustments.
The deal enables a significant cash return to shareholders of around £950m – 25p per share.
Comcast has committed to a long-term supply agreement with ITV Studios, with a minimum spend commitment of £2.1bn over 2028-32.
“For over seven decades, ITV has played an important and cherished role in the public life of the nation,” said Andrew Cosslett, chairman, ITV plc.
“At a time of rapid change in the industry, it is right that we now secure ITV’s crucial role as a public service broadcaster (PSB) and this transaction achieves this with ITV’s Media and Entertainment division combining with Sky to create a UK champion with the scale and resources to better compete with global streaming platforms.”
Carolyn McCall DBE (pictured), CEO at 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.
“All of ITV’s PSB commitments, including nations, 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 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.”
Dana Strong CBE, group CEO at Sky, 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.”