ITV sells media arm to Sky for £1.6bn in landmark deal

ITV has agreed to sell its media and entertainment division to Sky for £1.6 billion, one of the largest deals in British broadcasting history. The Sky ITV deal gives Comcast-owned Sky ITV's free-to-air channels and the ITVX streaming service, while ITV Studios remains independent as both companies seek to build a UK champion against Netflix and other global streaming giants.

Key Takeaways

• Sky will pay up to £1.6bn for ITV's broadcast channels and ITVX, with £1.2bn in cash upfront and up to £200m tied to 2027 advertising revenues.
• ITV Studios stays a standalone London-listed company; Sky has pledged at least £2.1bn in content spending on the studios business between 2028 and 2032.
• Comcast will sell Love Productions to ITV for £200m as part of the wider transaction.
• Popular shows including Coronation Street, Love Island and I'm a Celebrity are expected to stay on ITV and ITVX in the near term.
• The deal still needs regulatory approval; Sky has agreed an £80m break fee if regulators block it.

What is included in the Sky ITV deal?

Under the agreement announced on 6 July 2026, Sky will acquire ITV's media and entertainment business. That division runs ITV's free-to-air television channels and the ITVX streaming platform.

Sky will pay £1.2bn in cash initially, with a further payment of up to £200m in the second half of 2028 depending on 2027 advertising revenues, according to The Guardian.

ITV's programme-making arm, ITV Studios, is not part of the sale. The studio business, which has produced hits including I'm a Celebrity and Mr Bates vs the Post Office, will remain a standalone company listed on the London Stock Exchange.

Why did ITV sell its broadcasting arm to Sky?

Both broadcasters frame the deal as a response to a rapidly shifting UK media market. Sky said competition for audiences has intensified and that scale matters more than ever to compete with global streaming giants and platforms such as YouTube.

ITV chair Andrew Cosslett said the transaction secures ITV's role as a public service broadcaster by combining its media division with Sky to create a UK champion with the resources to compete with international streaming platforms.

ITV is legally required to provide a free-to-air service until at least 2034 under its public service broadcasting licence. Sky chief executive Dana Strong called the agreement a defining moment for British media.

For more on how streaming consolidation is reshaping entertainment, see our Future Tech & AI Wonders coverage.

What happens to ITV shows and ITV Studios?

Viewers should not expect immediate changes. Sky said audiences will continue to enjoy familiar programmes such as Coronation Street, Emmerdale, Love Island, I'm a Celebrity, This Morning and News at Ten, alongside major live sporting events.

After the deal completes, ITV Studios will operate as a standalone business. Sky has committed to spending at least £2.1bn on content from ITV Studios between 2028 and 2032, helping safeguard staples such as Coronation Street and Love Island.

Comcast will sell Love Productions, maker of The Great British Bake Off and The Piano, to ITV for £200m. ITV's board expects to return £950m to shareholders after completion, with a further £65m placed in escrow for the ITV pension scheme.

When will regulators decide on the Sky ITV takeover?

The deal is not yet final. It requires approval from UK regulators, and both companies have built break fees into the agreement. Sky would pay £80m if the deal fails to secure regulatory approval, while ITV would owe £11.5m if regulators block its acquisition of Love Productions.

ITV's broadcasting arm generated nearly £2bn in revenue last year, with profit before tax of £274.2m, down from £308.7m in 2024, according to the BBC. Comcast began takeover talks in November 2025.

If approved, the merger would rank among the biggest takeovers in British media history, reshaping how millions of UK households watch free-to-air television and streaming content.