Sky to Acquire ITV Media & Entertainment in £1.6bn Deal

Sky has agreed to acquire ITV Media & Entertainment in a deal worth up to £1.6bn, bringing ITVX, ITV’s free-to-air channels and its wider media business into Sky’s UK television and streaming operations. According to Sky, the transaction includes £1.2bn in cash, Sky’s Love Productions business and up to £200m in performance-related earn-out. The deal remains subject to regulatory approvals and customary conditions. ITV Studios is not included in the sale. Instead, it will continue as a separate production business while entering into a long-term content agreement with Sky.

Key Takeaways From Sky’s ITV Media & Entertainment Deal 

• Sky has agreed to acquire ITV Media & Entertainment for up to £1.6bn.
• The deal includes ITVX, ITV’s free-to-air channels and related media assets.
• ITV Studios will remain separate and continue as a listed content business.
• Sky’s Love Productions business forms part of the transaction.
• Completion is expected in the second half of 2027, subject to approval.
• The deal could create a larger UK commercial TV and streaming advertising platform.

Sky Agrees Deal for ITV Media & Entertainment

The proposed acquisition would bring together two major UK media groups at a time when broadcasters and streaming platforms are competing for audience attention, advertising spend and subscription growth.

Sky Group CEO Dana Strong described the agreement as “a defining moment for British media,” pointing to the combination of Sky and ITV Media & Entertainment across free-to-air television, pay TV and streaming.

Sky said the deal would combine free-to-air broadcasting, advertising-funded streaming and subscription television with its wider portfolio of broadband, mobile and business services. ITV currently reaches around 40 million people each week and has more than 16.5 million monthly digital users. Sky also said the combined operation would account for around 20% of all in-home viewing in the UK, placing it second to the BBC and ahead of YouTube by that measure.

For advertisers, the deal could create a larger UK-based media and streaming platform with access to linear TV, digital video and on-demand viewing environments. That matters as brands and agencies continue to review how video, connected TV and streaming fit into wider media and acquisition strategies.

What Is Included in the Transaction

The transaction covers ITV’s Media & Entertainment business, including ITVX and ITV’s free-to-air broadcast channels. It also includes ITV’s public service broadcasting operations, with Sky stating that all ITV public service broadcasting commitments will be maintained.

ITV’s announcement said the consideration includes an initial £1.2bn cash payment, Sky’s Love Productions business valued at £200m and contingent cash consideration of up to £200m. The contingent payment is linked to ITV’s total advertising revenue performance in the 2027 financial year. Love Productions, known for producing formats including The Great British Bake Off, will move into ITV Studios as part of the transaction.

ITV CEO Carolyn McCall said the transaction builds on the company’s recent progress and would deliver “clear, tangible value for shareholders,” while leaving ITV Studios positioned as a standalone global content business.

ITV Studios to Continue Separately

ITV Studios will remain outside the transaction and continue as a separate content business. ITV said the sale would leave ITV Studios as a standalone listed company focused on global content production and distribution. As part of the wider agreement, ITV Studios and Sky will enter into a long-term content supply arrangement. ITV said the agreement includes a minimum content commitment of £2.1bn over the period from 2028 to 2032. That structure gives Sky continued access to ITV programming while allowing ITV Studios to retain its role as a production and distribution business serving multiple buyers.

Why Advertisers Will Be Watching the Deal

The deal is not an affiliate marketing story in a direct sense, but it is relevant to performance marketers because it reflects the growing importance of streaming scale, premium video inventory and cross-channel media planning.

For advertisers and performance teams, the main points to watch are:

• Streaming scale: A larger Sky and ITV media operation could give advertisers access to a broader mix of linear TV, digital video and on-demand viewing environments.
• CTV planning: Connected TV and streaming may play a larger role in upper- and mid-funnel activity, especially for brands trying to reduce reliance on search and social alone.
• Measurement: As buyers move between TV, streaming, search, social and AI-led discovery, teams will need a clearer view of what each touchpoint contributes.
• Channel diversification: Larger video and streaming platforms may not replace affiliate channels, but they can influence awareness, discovery and retargeting before a conversion happens elsewhere.

That wider shift is already visible across performance marketing. Affiverse has covered how affiliate media buying strategy is becoming more important as teams build broader acquisition models. Reporting is part of the same challenge. As discovery paths become more fragmented, affiliates are also looking at how to track AI traffic in GA4 and understand where users are coming from before they convert. The deal also connects with the wider pressure on affiliates to explore alternative traffic channels as organic search becomes harder to depend on as a single growth engine.

Regulatory Approval Still Required

The deal is expected to complete in the second half of 2027, subject to regulatory approvals and other conditions. Given the size of the combined UK media and advertising footprint, the transaction is likely to draw attention from regulators, competitors and advertisers. For now, Sky and ITV are positioning the deal as a way to strengthen UK broadcasting, streaming and content investment in a market increasingly shaped by global platforms. For performance marketers, the immediate impact is limited. The longer-term story is about how UK video inventory, streaming audiences and advertising products may be packaged if the deal receives approval.