Pay-TV giant Sky has confirmed its UK£1.6 billion (US$2.1 billion) acquisition of free-to-air (FTA) commercial broadcaster ITV in a deal likely to have ramifications for the UK sports media landscape.
Sky first confirmed it was in preliminary talks to buy ITV’s media and entertainment business last November. A deal has now been finalised after several months of negotiations, creating what the pair described as a ‘commercial streaming champion’ for the UK.
Under the agreement, Sky will acquire ITV’s linear broadcasting and streaming business, which includes ITV1, ITV2, ITV3, ITV4 and ITVX. Those channels and services will continue to be available for free, with all public service broadcasting commitments to be met in full.
The deal also includes ITV subsidiary UTV but excludes Scotland’s STV, which is a separate company, and the ITV Studios production arm. Sky will also become an indirect 20 per cent shareholder in production firm ITN.
ITV reaches around 40 million people each week across its platforms and serves more than 16.5 million monthly digital users.
The two parties said the combined business would account for around 20 per cent of all UK in-home viewing, behind only public service broadcaster the BBC and ahead of YouTube. Sky chief executive Dana Strong anticipates the integrated streaming platform will have over 16 million viewers each month.
Sky and ITV also expect the acquisition will deliver UK£200 million (US$266.82 million) in annual cost savings through efficiencies in marketing, technology and non-UK content.
The transaction is expected to close in the second half of 2027 but remains subject to customary conditions and regulatory approvals.
Greater scrutiny of the agreement is expected amid concerns over potential job losses and questions around the dynamic between ITV News and Sky News. However, Sky said the move was necessary to compete with global streamers like Netflix and Amazon Prime Video.
If confirmed, the two parties have promised to deliver more FTA sport on ITV than ever before. The commercial broadcaster’s rights portfolio includes the ongoing men’s 2026 Fifa World Cup and the women’s tournament in 2027, as well as Uefa Euro 2028 and other England soccer internationals.
ProSportMedia
