LONDON — British broadcaster ITV announced Monday that it has reached an agreement to sell its media and entertainment division to Sky, which is owned by Comcast, in a deal valued at £1.6 billion, or approximately $2.13 billion.
Under the terms of the agreement, ITV will receive £1.2 billion in cash upfront. The deal also includes a potential additional payout of up to £200 million, which depends on advertising performance during the 2027 financial year. As part of the arrangement, ITV will also receive Love Productions — the company behind “The Great British Bake Off” — which will become part of ITV’s remaining studio operations.
Sky CEO Dana Strong described the transaction as a “defining moment” for the British media industry.
The combination of the UK’s largest free-to-air commercial broadcaster with pay-TV provider Sky would have seemed impossible just a few years ago. However, the explosive growth of platforms like YouTube and streaming services including Netflix, Amazon, and Disney has forced long-established broadcasters to seek greater scale in order to remain competitive.
“Bringing Sky and ITV Media and Entertainment together combines the very best of free-to-air television, pay TV and streaming, ensuring viewers across the UK continue to enjoy outstanding British programming in a rapidly changing world,” Strong said.
Strong added: “ITV will remain a public service broadcaster at the heart of British life, and we’re excited about the future we can build together.”
Once the transaction is complete, ITV will operate solely as a production company, creating content for the newly merged ITV-Sky entity as well as other broadcasters and streaming platforms around the world.
The combined ITV Media and Entertainment and Sky operation has pledged to invest a minimum of £2.1 billion in content between 2028 and 2032.
