Comcast-owned Sky is set to acquire ITV’s media and entertainment divisions in a £1.6 billion deal. ITV’s broadcast channels and the ITVX streaming service will remain free-to-air.
Negotiations commenced back in November, culminating in a clear agreement. Sky will pay ITV £1.2 billion in cash and assume control of Love Productions, renowned for producing The Great British Bake Off, among others. In addition, Sky will make a £200 million payment to ITV in 2028, contingent on achieving specific advertising revenue targets.
It is important to note that this acquisition does not encompass ITV’s studio division. However, as part of the agreement, Sky will invest £2.1 billion in content from ITV Studios over the next five years.
ITV holds the title of the largest commercial broadcaster in the UK, attracting 40 million weekly viewers and 16.5 million monthly digital users. When merged with Sky’s viewer statistics, the new entity will account for approximately 20% of in-home viewing across the UK.
Last year, YouTube claimed the position of the UK’s second most-watched media service. While Gen Alpha prefers YouTube first, there is a broader trend: the BBC has reported that even viewers over 55 are watching twice as much content on YouTube compared to previous years.
Following this merger, the combined viewership of Sky and ITV is anticipated to surpass YouTube, securing second place behind the BBC. Traditional media companies are increasingly concerned about YouTube’s dominance. As stated in the press release:
“The UK media market is undergoing a profound and rapid transformation, and as competition for audiences intensifies, scale matters more than ever in order to compete with global streaming giants and YouTube in the UK.”
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