Sky to Acquire ITV’s Media and Entertainment Divisions in £1.6 Billion Deal

By: Harsh Vardhan

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Updated on: 07-Jul-2026 07:00 AM

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​Sky, owned by Comcast, will acquire ITV’s media and entertainment divisions in a deal valued at £1.6 billion. ITV’s broadcast channels and the ITVX streaming service will remain free-to-air following the acquisition. The agreement, reached after negotiations that began in November, outlines the financial and operational terms between the two companies.

Key Highlights

• Sky will acquire ITV’s media and entertainment divisions for £1.6 billion.
• ITV’s broadcast channels and ITVX streaming service will remain free-to-air.
• Combined Sky and ITV will account for 20 percent of UK in-home viewing.

Key Details of the Acquisition

Sky will pay ITV £1.2 billion in cash as part of the transaction. The deal also includes a conditional payment of £200 million to ITV in 2028, which depends on achieving specific advertising revenue targets. The acquisition does not include ITV’s studio arm. However, Sky has committed to spending £2.1 billion on content from ITV Studios over the next five years.

ITV is the largest commercial broadcaster in the United Kingdom. It reaches 40 million weekly viewers and has 16.5 million monthly digital users. By adding ITV’s audience to its own, Sky will increase its share of the UK’s in-home viewing market.

Impact on UK Media Landscape

After the acquisition, the combined Sky and ITV media company will account for about 20% of in-home viewing in the UK. This positions the new entity ahead of YouTube, making it the second most-watched platform in the country, with the BBC remaining in the top spot.

YouTube has seen significant growth in the UK, especially among Generation Alpha, who often turn to the platform first. The BBC reported that people over 55 now watch twice as much YouTube as they did two years ago. Traditional media companies have expressed concern about the increasing competition from global streaming services and YouTube.

In a press release, the companies noted that the UK media market is undergoing rapid change. They emphasized the importance of scale to compete effectively with global streaming giants and digital platforms like YouTube.

Future Outlook

The acquisition is expected to reshape the UK’s media and entertainment sector. By combining resources, Sky and ITV aim to strengthen their position against international competitors. The deal highlights the growing need for traditional broadcasters to adapt as viewing habits shift toward digital and on-demand platforms.