Industry

Sky, the British pay-TV group owned by Comcast, has reached agreed terms to acquire ITV’s broadcast and streaming division, according to people familiar with the negotiations cited by Reuters.

The proposed transaction, valued at around £1.6 billion, would see Sky take control of ITV’s Media & Entertainment business, which includes ITV’s linear channels and its streaming service ITVX. As part of the wider deal structure, ITV Studios is expected to acquire Love Productions, the Sky-owned production company behind The Great British Bake Off and The Piano.

According to the report, Love Productions could be valued at between £80 million and £120 million, based on comparable production-company transactions. The overall agreement is also understood to include an earn-out element linked to the future performance of ITV’s Media & Entertainment unit.

The deal is now reportedly in the final legal phase and could be announced within the next two weeks, although timing may still shift due to remaining legal complexities. ITV and Sky declined to comment, while Comcast did not respond to Reuters’ request for comment.

If completed, the acquisition would mark a major reshaping of the UK television landscape. By combining Sky’s pay-TV and streaming operations with ITV’s free-to-air channels and ITVX platform, the deal would aim to create one of the UK’s leading streaming players, better positioned to compete with global platforms such as Netflix, YouTube, Amazon Prime Video and Disney+.

For ITV, the transaction would also complete the separation of its broadcasting and streaming activities from ITV Studios, which would continue as a standalone production and distribution group. The acquisition of Love Productions would further strengthen ITV Studios’ portfolio with one of the UK’s most successful entertainment producers.

ITV first confirmed in November that it was in discussions with Sky regarding the potential sale of its Media & Entertainment business. The negotiations have involved the complex process of separating ITV’s channels and ITVX from ITV Studios.

Following the Reuters report, ITV shares rose by 2.9%, giving the group an estimated market value of around £3.1 billion.