Sky TV spends up to $2.14 billion to acquire ITV’s media and entertainment business
Transaction expected to close in second half of 2027 ITV plans to return around £950m ($1.27bn) of deal proceeds to shareholders (stock code CMCSA, up 0.25%) Sky, its subsidiary, has reached an acquisition agreement to acquire the television business of the British independent television station (ITV) for up to US$2.14 billion, integrating two well-known British media brands. According to the terms of the deal, ITV, a London-listed company, will receive 1.2 billion pounds (equivalent to $1.6 billion) in cash before performance floating considerations, plus Love Productions, a film and television production company owned by Sky TV; if performance targets are met, additional floating payments will bring the total transaction size to up to 1.6 billion pounds. At a time when young viewers are abandoning traditional TV stations and turning to streaming media platforms such as YouTube and Netflix, this deal will allow the American media company to control one of the UK's top-rated radio and television organizations. Sky TV expects that the integrated business will account for about 20% of the total viewing time of British households, and believes that the enlarged group will be more powerful to compete with global technology and media giants. ITV is the UK's largest commercial streaming and broadcast television operator, producing Love Island, I'm a Celebrity... Get Me Out of Here! " and other popular dramas. Prior to the acquisition, Comcast announced at the end of June that it would spin off its media business and communications business. This company, which specializes in cable TV and entertainment content, holds IP such as "Saturday Night Live", "Law & Order", and Bravo Channel. It plans to spin off Universal Pictures NBCU and Sky TV to establish an independent media company purely focused on content. Dana Strong, CEO of Sky Television Group, said: "This is a landmark moment for the British media industry. Two local brands that are well-known and trusted by the people will take this opportunity to work together to build a stronger future." ITV plans to return around £950m of the proceeds from the deal to all shareholders. The agreement stipulates that ITV Studios will be split and listed separately in London; the production company will sign a long-term content supply agreement with the acquired ITV media and entertainment segment and Sky TV, with a minimum cooperative content order value of 2.1 billion pounds from 2028 to 2032. The transaction still needs to be approved by regulatory agencies in various countries and is expected to be officially completed in the second half of 2027.