Sky and ITV have agreed on the terms of a £1.6 billion (US$2.1 billion) acquisition.
Under the deal, Sky will acquire ITV’s Media & Entertainment division, including its broadcast channels and streaming platform ITVX, while ITV Studios will acquire Love Productions, the company behind The Great British Bake Off and The Piano. Love Productions is estimated to be worth between £80 million and £120 million.
Lawyers for both parties are currently finalizing the legal details, with an official announcement expected within the next two weeks. Following the transaction, ITV Studios will continue to operate independently as a production and distribution company.
By integrating ITVX and ITV’s broadcast channels, Sky aims to create one of the UK’s three largest streaming platforms, strengthening its competitive position against global players such as Netflix, YouTube, Amazon Prime Video and Disney+.
Sky originally acquired a majority stake in Love Productions in 2014 before taking full ownership in 2020. News of the deal sent ITV shares up by nearly 3%, valuing the company at approximately £3.1 billion.
The acquisition will require regulatory approval from Ofcom and the Competition and Markets Authority (CMA). The proposed deal is also expected to spark discussions about the future structure of Sky’s and ITV’s news operations.
