Sky has officially agreed to acquire ITV’s Media & Entertainment (M&E) broadcasting and streaming arm in a landmark transaction valued at up to £1.6 billion.

 

Sky to pay £1.6bn for ITV's broadcast and streaming division

Sky has officially agreed to acquire ITV’s Media & Entertainment (M&E) broadcasting and streaming arm in a landmark transaction valued at up to £1.6 billion. Announced on July 6, 2026, the deal brings together two of the UK's most prominent media entities to better compete with major American streaming platforms like Netflix and Amazon Prime Video.

 

Financial & Structural Breakdown

The overall consideration of up to £1.6 billion is structured through a combination of assets and performance milestones:

• Upfront Cash: Sky will pay £1.2 billion in cash.
• Performance Earn-Out: An additional payment of up to £200 million is dependent on ITV meeting specific advertising revenue thresholds in 2027.
• Production Asset Swap: As part of the transaction, Sky’s parent company, Comcast Corporation, will sell Love Productions (the creators of The Great British Bake Off) to ITV for an agreed value of £200 million.
• Future Investment: The combined Sky and ITV entity has committed to spending at least £2.1 billion on content between 2028 and 2032.
• Shareholder Returns: ITV expects to return approximately £950 million to its shareholders following completion.

What is Included (and Excluded)

• Included: The transaction incorporates ITV's free-to-air terrestrial channels (including ITV1 and ITV2) and its digital streaming platform, ITVX.
• Excluded: The deal strictly excludes ITV Studios, the highly profitable content production arm behind hits like Love Island and Mr Bates vs the Post Office. ITV Studios will become a "pure-play global content business" listed on the London Stock Exchange.

Impact on Viewers and Operations

According to official updates published on the Sky Group Newsroom, the deal will maintain regular operations for the public:

• Free-To-Air Protection: Popular programs like Coronation Street and Emmerdale will stay completely free-to-air and outside a paywall. ITV is legally bound to provide a free-to-air service until at least 2034.
• Platform Availability: ITVX and the linear channels will remain accessible on all standard platforms, including Freeview, Freely, and Virgin Media.
• Editorial Independence: Sky News and ITV News will continue to operate as separate, distinct editorial voices.
• Corporate Timeline: The agreement is still subject to regulatory and shareholder approval. Once finalized, the division will integrate into the newly proposed standalone NBCUniversal entity, which Comcast plans to spin off next year.