Overview
- Multiple outlets reported Thursday that Sky and ITV have agreed terms for a roughly £1.6 billion deal for ITV’s Media & Entertainment unit, with lawyers said to be finalizing documentation.
- The package includes an estimated c.£200 million performance‑linked earn‑out and a carve‑out that transfers Love Productions to ITV Studios rather than to Sky.
- ITV Studios will remain independent and take on Love Productions, reflecting ITV’s split of its production business from its channels and streaming arm after months of restructuring.
- The transaction must clear reviews by the Competition and Markets Authority and Ofcom and obtain final sign‑off from culture secretary Lisa Nandy, with rival broadcasters such as Channel 4 and Channel 5 expected to raise competition concerns.
- Deal proponents say the tie‑up would strengthen ITVX and Sky’s streaming reach against Netflix, Amazon and Disney Plus, while critics point to complications including ITV’s 40% stake in ITN and risks to news supply for other broadcasters.