Sky buys ITV assets for £1.6bn to fight streamers
Sky’s £1.6bn acquisition of ITV’s main broadcasting assets signals a pivotal shift in Europe’s media landscape as domestic players scramble to counter the financial power of global streaming platforms.
Sky is paying £1.6bn to acquire ITV’s broadcast channels and streaming service in one of the largest takeovers in British media history. The transaction, which remains subject to regulatory approval, will spin off ITV Studios as a standalone business. Sky will pay £1.2bn in cash, hand over its Love Productions business, valued at £200m, and pay a further £200m in 2028 if advertising revenue targets are met.
Viewers will keep free access to hit programmes like Coronation Street, Emmerdale and Love Island until at least 2034. Sky chief executive Dana Strong said the company has secured a five-year content deal and intends to negotiate for popular shows to stay free-to-air beyond the expiry of ITV's public service licence. Some Sky sports coverage will also be made available for free on the ITV platform to build broader audiences.
The merger is a direct response to the rapid expansion of global streaming platforms. ITV chief executive Dame Carolyn McCall noted that available streaming hours in the UK market have surged from 240,000 to 800,000 in just five years, a figure that excludes YouTube. She described the competition for viewers and advertisers as "ferocious," arguing that domestic broadcasters need scale to afford new content.
This consolidation carries significant implications for the broader European media sector. Former ITV chairman Sir Peter Bazalgette said the deal was "essential" for broadcaster survival. "If we don't see consolidation between domestic broadcasters, we won't have any in 20 years time and it's the same for all the European countries because of the competition from the streamers," he said.
US technology and media companies possess vastly greater financial firepower due to the size of their domestic market. By merging, Sky and ITV are attempting to build a European entity capable of attracting advertising revenue. Susannah Streeter, chief investment strategist at Wealth Club, described the transaction as a "significant step in the reshaping of Europe's media landscape."
The combination of two major broadcasters will draw intense scrutiny from regulators. Dame Caroline Dinenage, chair of the Culture, Media and Sport Committee, noted the combined business could "have more clout to attract audiences and advertising revenue," but warned the Competition and Markets Authority and Ofcom must ensure the deal serves audience interests. Sky has pledged to spend £2.1bn on content from the newly independent ITV Studios over the next five years.
