The UK television industry is set for one of its biggest shake-ups in decades after Sky agreed a deal worth up to £1.6 billion to acquire ITV’s Media & Entertainment division.
The landmark agreement will bring together two of Britain’s biggest broadcasters, combining Sky’s pay TV expertise with ITV’s free-to-air channels and the ITVX streaming platform.
While the takeover still requires regulatory approval before it can go ahead, it has already sparked plenty of questions. What exactly is Sky buying? Will ITV still be free to watch? And what could it mean for streaming services in the UK?
Here’s everything you need to know about the proposed deal.
What is included in the Sky and ITV deal?
Sky isn’t buying ITV as a whole. Instead, it is acquiring ITV’s Media & Entertainment business, which includes:
- ITV1, ITV2, ITV3, ITV4 and ITVBe
- ITVX, ITV’s streaming platform
- ITV’s advertising sales business
- The broadcaster’s public service broadcasting operations
One major part of ITV is not included in the sale.
ITV Studios – the production company behind shows including Love Island, I’m a Celebrity… Get Me Out of Here!, Coronation Street, Emmerdale and Mr Bates vs The Post Office – will continue as its own publicly listed business.
As part of the wider agreement, Sky’s Love Productions, best known for producing The Great British Bake Off, will transfer to ITV Studios instead.
Financially, the agreement is made up of three parts:
- £1.2 billion paid in cash by Sky
- Love Productions, valued at £200 million
- Up to a further £200 million depending on ITV’s advertising performance in 2027
Why does Sky want to buy ITV?
The television market has changed dramatically over the past decade.
Traditional broadcasters are no longer just competing with each other. Instead, they’re fighting for viewers against streaming giants such as Netflix, Disney+, Amazon Prime Video and YouTube, all of which continue to invest heavily in original content and technology.
By combining Sky’s subscription television business with ITV’s free-to-air channels and ITVX, the company believes it can create a stronger UK-focused media business capable of competing with global rivals.
Sky has described the proposed company as a “UK-focused national streaming champion”, while also highlighting expected annual cost savings of around £200 million through shared technology, marketing and platform efficiencies.
It has also pledged to invest at least £2.1 billion in content from ITV Studios between 2028 and 2032, helping to secure future British programming.
What does the deal mean for viewers?
For most households, the immediate answer is: very little.
Sky has committed to maintaining ITV’s public service broadcasting obligations, meaning ITV’s channels are expected to remain free-to-air rather than moving behind a subscription.
Popular programmes including Coronation Street, Emmerdale, Love Island and major sporting events are all expected to continue airing as they do today.
ITVX will also continue operating following the acquisition. However, over the longer term, there could be closer integration between ITVX and Sky’s own streaming platforms, including NOW and Sky Stream, as the combined business looks to simplify how viewers access content.
No changes have been announced yet, but streaming is expected to become a major focus once the takeover is complete.
Consumers are therefore unlikely to notice any immediate difference, although future bundles, recommendations and cross-platform experiences could evolve as the businesses become more closely connected.
When will the takeover happen?
Although the agreement has been announced, the acquisition is not yet complete.
The deal must first be reviewed by UK regulators, including the Competition and Markets Authority (CMA) and Ofcom. Given the size of the transaction and its importance to UK broadcasting, the approval process is expected to take between 12 and 18 months, with completion currently anticipated during the second half of 2027.
If approved, ITV’s board intends to return around £950 million to shareholders, while ITV Studios will continue operating independently with long-term content agreements already in place with the new Sky-owned broadcasting business.
Whether the merger ultimately transforms how people watch television remains to be seen, but there’s little doubt it represents one of the most significant moments in British broadcasting since streaming first began disrupting traditional TV.
For viewers, the short-term experience should remain familiar. In the longer term, however, the deal could help shape how British television competes in an increasingly global streaming market.
