Full Breakdown
Sky and ITV Near £1.6 bn Deal to Merge Broadcast and Streaming Assets
6/26/2026, 12:05:10 PM
Deal Overview
Sky has agreed terms to acquire ITV’s Media & Entertainment (M&E) division for £1.6 bn ($2.1 bn). The transaction covers ITV’s free-to-air channels and ITVX, but excludes ITV Studios. Lawyers are finalising the agreement; an announcement could follow two weeks.
Background
ITV’s M&E unit bundles the broadcaster’s linear channels and ITVX, home to “Love Island” and “Believe Me”. ITV Studios will acquire Love Productions – behind “The Great British Bake Off” and “The Piano” – for £80-120 m plus an earn-out.
Key Players
The deal involves Sky, ITV plc (CEO Carolyn McCall), ITV Studios, Love Productions (founded by Richard McKerrow, who left in 2023), regulators Ofcom and CMA, and broadcasters Channel 4 and Channel 5.
Timeline
Initial reports of Sky’s interest appeared in late 2025. ITV confirmed “active discussions” in May 2026, and Reuters reported that terms were agreed in June 2026, with lawyers reviewing the deal. Sources say a public announcement could follow within two weeks.
Financial Terms
The core price is £1.6 bn. Love Productions is valued at £80-120 m with an earn-out tied to its performance. An earn-out of £200 m is linked to the post-sale performance of ITV’s M&E unit. ITV shares rose 2.5-2.9 % after the news, valuing the combined group at about £3.1 bn.
Regulatory Review
The merger needs approval from Ofcom and the CMA, with the final decision by Culture Secretary Lisa Nandy.
Criticism & Opposition
Channel 4 and Channel 5 have signaled likely opposition on competition grounds, arguing the deal could concentrate market power. ITV’s 40 % stake in ITN raises questions about ITV News.
Strategic Rationale and Market Impact
The entity would become one of the UK’s three largest streaming platforms, giving Sky a free-to-air foothold and expanding ITV Studios’ catalogue with the “Great British Bake Off” franchise. The scale will improve competition with services like Netflix, Amazon Prime Video, Disney+ and YouTube.
Official Statements & Responses
ITV CEO Carolyn McCall told a conference that the M&E business is “extremely resilient and cash generative” and “recognized by shareholders as a strong business, not what it was six or seven years ago.” ITV and Sky declined comment; Comcast did not respond.
Verbatim Quotes
- “extremely resilient and cash generative.” — Carolyn McCall, CEO, ITV plc
- “recognized by shareholders as a strong business, not what it was six or seven years ago,” — Carolyn McCall, CEO, ITV plc
What’s Next
A formal announcement is expected within the next fortnight, after which Ofcom and the CMA will review the deal. The Culture Secretary’s decision and any remaining legal issues could extend the timetable, delaying completion.
Conflicting Reports & Gaps
Sources differ on ITV’s share-price rise, citing 2.5 %, 2.9 % and “nearly 3 %”. No data gaps were identified.
