Comcast's Sky agrees £1.6bn deal to buy ITV's free-to-air channels and ITVX

Comcast-owned Sky to keep ITV shows free, faces regulatory review

Sky will pay £1.2bn in cash initially for ITV’s media and entertainment division, which includes the UK’s free-to-air channels and the ITVX streaming service, with a further £200m potentially due in the second half of 2028 depending on 2027 advertising revenue, according to the company. The US telecoms group Comcast, which bought Sky’s European operations for £31bn eight years ago, is also selling its Love Productions business — the producer of The Great British Bake Off and The Piano — to ITV for £200m.

The deal does not include ITV’s programme-making arm, ITV Studios, one of the world’s largest production companies behind shows such as I’m a Celebrity … Get Me Out of Here! and Mr Bates vs the Post Office. ITV Studios will remain a standalone company listed on the London Stock Exchange. As part of a long-term strategic partnership, Sky has committed to spending at least £2.1bn on the studios business between 2028 and 2032, safeguarding the future of popular programmes including Coronation Street and Love Island.

Dana Strong, Sky’s chief executive, said the company had no plans to move favourite shows behind a paywall. She added that Sky planned to make more sport available free-to-air.

Sky described the transaction as a chance to create a “UK-focused national streaming champion” and hopes it will help compete with US platforms including Netflix, YouTube and Amazon Prime Video. The company said it had identified approximately £200m in annual cost savings to be realised by the end of the third year after closing, primarily through efficiencies in marketing, technology platforms and non-UK content. Strong said a “minority” of the savings would come from job cuts where there was duplication, “primarily in corporate and commercial functions.”

Carolyn McCall, ITV’s chief executive — who some industry sources believe will leave once the takeover is complete — said ITV currently spends £100m annually on non-UK content, which it would not need to do once it was part of Comcast.

The deal will come under scrutiny from the UK’s Competition and Markets Authority and the telecoms regulator Ofcom. Ofcom is expected to examine concerns about the owner of Sky News taking half of ITV’s 40% stake in ITN, the production company behind ITV News, Channel 4 News and 5 News. Strong said there were no plans to merge Sky News and ITV News and pledged to maintain independence at least until 2034 in line with ITV’s existing licence obligations to Ofcom. She described ITV’s regional news operation as an opportunity for Sky, which does not have a local news offering.

ITV’s board expects to return £950m to shareholders, and an additional £65m will be placed in escrow for the benefit of the ITV pension scheme. Sky has agreed to pay a break fee of £80m if the deal fails to secure regulatory approval, while ITV would pay £11.5m if regulators block the acquisition of Love Productions.

Andrew Cosslett, ITV’s chair, said the transaction secures ITV’s crucial role as a public service broadcaster.

Last week, Comcast said it would spin off its media operation — which includes Sky and the NBCUniversal film, TV and theme park business — into a separate publicly listed company. Chris Kennedy, ITV’s finance chief, said he did not believe the spin-off, which the US group said would take a year to complete, would affect the regulatory process.