Sky has formally signed an agreement to acquire ITV’s Media & Entertainment (M&E) division for a total consideration reaching up to £1.6 billion.
The deal consists of £1.2 billion in upfront cash, a performance-linked earn-out of up to £200 million tied to future advertising revenues, and the £200 million divestment of Sky’s Love Productions, the creator of The Great British Bake Off, to ITV Studios.
This major consolidation positions the combined entity as the largest commercial television group in the United Kingdom, commanding nearly 20% of domestic in-home viewing.
The partnership strategically aims to establish a stronger operational counterweight against multinational tech networks and global streaming platforms in the local market by aggregating free-to-air networks, advertising-supported digital environments like ITVX, and subscription television under a single corporate umbrella. Pending regulatory approval, the businesses project that the transaction will generate roughly £200 million in annualized run-rate cost synergies by the completion of the third year post-merger, driving operational efficiencies through marketing, backend technology platforms, and content sourcing pipelines.
To preserve journalistic plurality, both organizations emphasized that “ITV News” and “Sky News” will fully maintain separate and independent editorial units, while all of ITV’s public service broadcasting commitments and regional/national licensing commitments remain protected until 2034. Furthermore, to safeguard domestic creative industries, the transaction sets up a comprehensive five-year, £2.1 billion programming alliance with ITV Studios.
