UK — Sky announced a £1.6 billion deal to acquire ITV's media and entertainment business, including its free-to-air TV channels in the UK and the ITVX streaming platform. The acquisition involves an initial cash payment of £1.2 billion.

Sky, owned by the U.S. telecoms company Comcast, has agreed to pay up to an additional £200 million in the latter half of 2028. This payment is contingent on the 2027 advertising revenues of the acquired business. As part of the transaction, Comcast will sell its Love Productions business to ITV for £200 million. Love Productions produces programs such as "The Great British Bake Off" and "The Piano."

The deal is expected to close in the second half of 2027 and requires regulatory approval. Sky has committed to spending at least £2.1 billion on ITV Studios between 2028 and 2032. ITV Studios, which produces shows like "I'm a Celebrity…Get Me Out of Here!" and "Mr Bates vs the Post Office," will remain a standalone company listed on the London Stock Exchange and is not included in this transaction.

Following the completion of the deal, the ITV board anticipates returning £950 million to shareholders. Approximately £65 million will be placed into escrow for the benefit of the ITV pension scheme. Net cash proceeds from the sale are projected at about £1.05 billion after accounting for approximately £185 million in transaction and separation costs.

ITV plans to use these proceeds to reduce ITV Studios' leverage to around 1.5 times net debt to EBITDA. The company also intends to return about £950 million to shareholders, equivalent to 25 pence per share, excluding any contingent consideration. ITV Studios will sign a long-term content supply agreement with ITV Media and Entertainment and Sky, covering shows including "Coronation Street," "Emmerdale," "Love Island," and "I'm a Celebrity…Get Me Out of Here!" The agreement includes a guaranteed minimum spend totaling £2.1 billion between 2028 and 2032.

"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," said Dana Strong, Sky's chief executive. "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."

"For over seven decades, ITV has played an important and cherished role in the public life of the nation," said Andrew Cosslett, ITV's chair. "At a time of rapid change in the industry, it is right that we now secure ITV's crucial role as a public service broadcaster and this transaction achieves this with ITV's media and entertainment division combining with Sky to create a UK champion with the scale and resources to better compete with global streaming platforms."

ITV's public service broadcasting commitments, including its regional and national news services, will remain protected under the Channel 3 licenses, which run until 2034. Both Sky and ITV's Media and Entertainment business are expected to become part of NBCUniversal after Comcast's planned separation.