Sky agrees to buy ITV's media arm in deal worth $2.1 billion

Sky has agreed to buy ITV's Media and Entertainment division for up to £1.6 billion ($2.14 billion), a deal that would fold ITV's broadcast channels and ITVX streaming service into Comcast-owned Sky while leaving ITV Studios as a standalone production company with a long-term programming pact. The transaction is one of the largest reshuffles in UK commercial television in years, with regulatory approval still required before a targeted close in the second half of 2027.

For viewers and investors tracking the sky buy itv8217s media story, the agreement answers a long-running question about ITV's future while setting up a major shareholder payout. More UK streaming shifts are covered in our Streaming & TV Alerts hub.

Key Takeaways

• Total consideration reaches up to £1.6 billion ($2.14 billion), including cash, Sky's Love Productions unit, and performance-linked payments.
• ITV Studios remains separate and will supply flagship shows under a £2.1 billion ($2.81 billion) minimum spend agreement from 2028 to 2032.
• ITV plans to return roughly £950 million ($1.27 billion) to shareholders, equal to 25p per share.
• All ITV public service broadcasting commitments stay protected under Channel 3 licenses running until 2034.
• Closing is expected in the second half of 2027, subject to regulatory clearance.

What Is Sky Buying From ITV?

Sky's acquisition target is ITV's Media and Entertainment business — the division that houses ITV's linear channels and the ITVX streaming platform. ITV Studios, the group's production arm behind global hits, is not part of the sale and is being positioned as a standalone global content company after completion.

As part of the consideration, Sky will contribute Love Productions, maker of The Great British Bake Off and The Piano, valued at £200 million ($268 million). Both Sky and ITV's M&E unit are expected to become part of NBCUniversal once Comcast's planned corporate separation is complete, according to Variety.

How Much Will Sky Pay for ITV's Media Arm?

The headline price is up to £1.6 billion ($2.14 billion). At completion, Sky will pay £1.2 billion ($1.61 billion) in cash, transfer Love Productions at a £200 million valuation, and potentially pay up to £200 million ($268 million) more in contingent payments due in the second half of 2028, tied to advertising revenue performance in fiscal 2027.

ITV values the deal at an EV/EBITDA multiple of roughly 5.6 to 6.4 times 2025 earnings, in line with recent precedent transactions. Net cash proceeds from the sale are projected at about £1.05 billion ($1.4 billion) after roughly £185 million ($247 million) in transaction and separation costs.

What Happens to ITV Studios and Shareholders?

ITV Studios will sign a long-term content supply agreement with the combined ITV M&E and Sky entity. The pact covers shows including Coronation Street, Emmerdale, Love Island, I'm a Celebrity...Get Me Out of Here!, and ITV's daytime slate, with guaranteed minimum spend totaling £2.1 billion ($2.81 billion) between 2028 and 2032.

ITV intends to use sale proceeds first to cut ITV Studios' leverage to around 1.5 times net debt to EBITDA, then return about £950 million ($1.27 billion) to shareholders. Post-completion, ITV Studios is expected to target adjusted EBITA margins of 13% to 15% and average profit-to-cash conversion of roughly 80%, with a Capital Markets Day planned before the deal closes.

When Will the Sky-ITV Deal Close?

The transaction is expected to close in the second half of 2027 and requires regulatory approval. It is not subject to shareholder approval under U.K. Listing Rules. ITV chair Andrew Cosslett said the deal secures ITV's role as a public service broadcaster by combining M&E with Sky to build a UK champion able to compete with global streaming platforms.

ITV CEO Carolyn McCall said Sky would be a strong custodian of the business, while Sky group CEO Dana Strong pledged that ITV would remain a public service broadcaster at the heart of British life. McCall also noted that all ITV PSB commitments, including nations, regional, and national news, remain protected under the Channel 3 licenses Sky is acquiring.