Sky ITV has agreed terms for Sky to acquire ITV Media & Entertainment from ITV plc in a deal worth up to £1.6 billion. The transaction brings free-to-air broadcasting and subscription television into one package, with ITV channels and ITVX set to stay free-to-air after completion.
£1.6 billion is the headline value, but the final figure can move with cash, debt and net working capital adjustments. Sky said the consideration includes £1.2 billion in cash, Love Productions, and up to £0.2 billion in performance-related earn-out, so the headline price is not the amount that will necessarily change hands in one clean sum.
40 million people every week already reach ITV, and the business serves more than 16.5 million monthly digital users. Sky said the combined business would account for around 20% of all in-home viewing in the UK, placing it second to the and ahead of YouTube in UK in-home viewing.
Dana Strong on British media
Dana Strong 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.”
Carolyn McCall 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.”
ITV channels and ITVX stay free-to-air
The deal keeps ITV channels and ITVX free-to-air after completion, while ITV's public service broadcasting commitments continue to be met in full. That leaves the combined group with a wider commercial footprint, but without changing the free-to-air status that many viewers use every day.
The transaction still needs customary conditions and regulatory approvals. If those clear, the deal would leave Sky with a larger viewing base and ITV shareholders with a package that mixes cash, Love Productions and a performance-linked earn-out instead of a simple cash sale.
