22OCT

Sky and ITV settle £1.6bn terms

3 min read

16:20UTC

Sky and ITV agreed terms on 25 June for Sky to buy ITV's Media & Entertainment arm, including ITVX, for £1.6bn, pending Ofcom and CMA clearance.

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Key takeaway

Sky and ITV agreed £1.6bn terms for ITV's broadcast arm, still pending regulatory clearance.

Sky, the Comcast-owned broadcaster, and ITV agreed terms on Thursday 25 June for Sky to buy ITV's Media & Entertainment arm for £1.6bn.⁠¹ The arm carries ITV's linear channels and the ITVX streaming service; Love Productions, maker of The Great British Bake Off, moves to ITV Studios, which stays out of the deal.

The price matches the figure Sky floated in last month's advanced talks, which ITV chief executive Carolyn McCall confirmed were actively engaged at the Enders Analysis conference on 4 June. Agreed terms move the deal a step past talks but stop short of a signature: a formal announcement is expected within about two weeks, and the UK's media regulator Ofcom and the Competition and Markets Authority (CMA) must clear it.

If the deal closes, ITV inherits Comcast's AI production stack without running its own procurement, and the future of Sky News and ITV News goes onto the table.

Deep Analysis

In plain English

ITV is the UK's largest commercial broadcaster, best known for Coronation Street, Love Island, and the ITV News. Sky is the UK's largest pay-TV company, owned by the American firm Comcast. On 25 June 2026, the two agreed that Sky would buy ITV's television channels and its streaming service ITVX for £1.6bn. The deal doesn't include ITV's production studio (ITV Studios), which makes programmes and sells them internationally, or Love Productions, which makes The Great British Bake Off. Those remain separate. The deal needs approval from Ofcom (the UK broadcasting regulator) and the Competition and Markets Authority (CMA) before it can complete. In 2010, a much smaller investment by Sky's predecessor in ITV was blocked by regulators on concern that one company would become too dominant in UK broadcasting; whether this full purchase raises the same concern is the central regulatory question.

Deep Analysis

Root Causes

ITV's linear advertising revenue declined structurally after 2022 as streaming hours displaced broadcast minutes among under-50 audiences. ITV's M&E arm at £1.6bn reflects a valuation based on declining linear advertising revenue, not ITVX's growth trajectory, which remains sub-scale at under 2 million paying subscribers. ITV could not sustain the capital expenditure required to build ITVX to competing scale against Netflix, Disney+, and Amazon without a financially stronger parent.

Comcast's rationale runs in the opposite direction: Sky's UK pay-TV bundle needs a free-to-air broadcast complement that gives subscribers a reason not to cut the pay-TV cord when streaming alternatives proliferate. ITV's Channel 3 audience, still over 10 million peak viewers for major events, provides that complement at a valuation Comcast can justify against Sky's subscriber-retention economics.

What could happen next?

Risk
Ofcom may impose public-interest conditions on ITV Channel 3's must-carry news obligations under Sky ownership, constraining Sky's ability to integrate ITV's schedule into its commercial ad-targeting architecture post-close.
Consequence
ITVX's 40 million-plus registered users become a first-party data asset under Sky's NBCU-aligned ad-tech stack, creating a UK-wide CTV (connected TV) targeting capability Comcast has lacked since Sky launched in the UK.

Source Landscape

This story draws on neutral-leaning sources

Primary parallel: BSkyB's 2010 attempt to acquire a 17.9% equity stake in ITV was blocked by the Competition Commission on broadcasting plurality grounds, a 17.9% stake was enough to trigger plurality concerns because of BSkyB's existing market position in pay-TV.

The combined Sky-ITV entity in 2026 would give Comcast ownership of the UK's largest pay-TV operator and the country's largest commercial free-to-air broadcaster simultaneously. The plurality test Ofcom and the CMA will apply in 2026 is more demanding than the 2010 test, because the asset being acquired is not a minority stake but the broadcast operating entity.

Counter-parallel: Discovery's 2018 acquisition of Scripps Networks Interactive and subsequent launch of Discovery+ in the UK illustrates an alternative route: a US media company acquiring specialist UK broadcast rights and building a direct-to-consumer streaming product without triggering must-carry plurality concerns, because Scripps (HGTV, Food Network) held no public-service broadcasting obligations.

Sky acquiring ITV's M&E arm cannot replicate the Discovery model because ITV Channel 3's PSB (public service broadcasting) obligations come with the licence, not as a separable asset.

Consensus view: Enders Analysis (Claire Enders) and Ampere Analysis both frame the deal as Comcast using Sky to acquire linear broadcast reach in the UK at a distressed valuation: ITV's Media and Entertainment arm at £1.6bn implies a revenue multiple below 1x on ITV's broadcast advertising revenue, reflecting the structural decline in UK linear viewing since 2022.

Comcast acquires a Channel 3 licence and ITVX's 40 million-plus registered user base as an audience signal layer for Sky's ad tech business, not as a linear broadcast bet.

Counter-view: MIDiA Research's Tim Mulligan argues that ITV's negotiating position is better than the headline price suggests: by retaining ITV Studios, which produces the content Sky needs to carry, and keeping Love Productions inside the retained entity, ITV positions its production arm as an ongoing supply-side counterweight.

ITV Studios' content is a dependency Sky inherits rather than acquires; the production relationship gives ITV leverage at the first content-supply renegotiation post-close.

Key tension: Whether Ofcom will impose public-interest conditions on Sky's ownership of ITV's Channel 3 broadcast licence, specifically around must-carry news obligations and the BBC's public service broadcasting compact, conditions that would constrain how freely Sky can integrate ITV's schedule into its commercial ad-targeting architecture.

Sources:Deadline

Mentions:ITV →Love Productions →Deadline →Ofcom →Competition and Markets Authority →Sky →Comcast →Carolyn McCall →Enders Analysis →Sky News →ITVX →ITV Studios →ITV News →

First Reported In

Update #7 · WBD rebuilds its ad stack on agentic AI

Deadline· 28 Jun 2026

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Causes and effects

Caused by

ITV nears £1.6bn sale into Sky's stack

Sky's entry into advanced acquisition talks in May advanced to agreed terms on 25 June at the same £1.6bn price.

Occurred 14 May 2026

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ITV confirms Sky talks still live

ITV CEO McCall's Enders Analysis confirmation that talks were actively engaged in June preceded the terms-agreed announcement on 25 June.

Occurred 4 Jun 2026

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Sky signs £1.6bn deal to buy ITV

The 6 July formal signing converts the terms Sky and ITV agreed on 25 June into a completed transaction.

Occurred 6 Jul 2026

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This Event

Sky and ITV settle £1.6bn terms

Agreed terms move a year of on-off talks a step closer to handing ITV Comcast's AI production stack.

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Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.