ITV Plc has agreed to sell its Media & Entertainment division — encompassing the ITVX streaming platform and its free-to-air channels — to Comcast Corporation-owned Sky Group for up to £1.6 billion ($2.1 billion) including debt. The deal leaves ITV Studios outside the transaction, with the production arm set to become a standalone company with its shares listed on the London Stock Exchange.
The consideration comprises £1.2 billion in cash payable at completion, the contribution of Sky's Love Productions business valued at £200 million, and up to £200 million in contingent payments due in the second half of 2028, tied to advertising revenue performance in fiscal 2027. The transaction values ITV's M&E business at an EV/EBITDA multiple of approximately 5.6 to 6.4 times 2025 earnings. ITV plans to return roughly £950 million ($1.27 billion) to shareholders following completion. The deal is expected to close in the second half of 2027 and does not require shareholder approval under UK Listing Rules, though it remains subject to clearance from both the Competition and Markets Authority and Ofcom.
Sky Group chief executive Dana Strong described the agreement as 'a defining moment for British media and an opportunity to build a stronger future for two of the UK's most loved and trusted brands' [Source: RTE]. The two companies said the combined entity would be a stronger rival to global streaming giants. The newly combined Sky and ITV M&E business has committed to a minimum content spend of £2.1 billion over the period 2028 to 2032. ITV Studios, for its part, will operate as a pure-play global content business and has entered into a long-term agreement to supply content to the combined Sky and ITV operation.
ITV's public service broadcasting obligations — including nations, regional, and national news — will be maintained under the Channel 3 licences that Sky is acquiring, which run until 2034. Both Sky and ITV's M&E business are expected to become part of NBCUniversal once Comcast's planned separation of that entity is complete.
Talks between Sky and ITV on the transaction had been under way since at least last November. The deal brings together Britain's largest free-to-air commercial broadcaster with Comcast's pay-TV operator — a combination that would have been considered unlikely just a few years ago. The accelerating growth of YouTube and streaming platforms including Netflix, Amazon, and Disney has prompted established broadcasters to seek greater scale. Comcast acquired Sky in 2018 in a cash offer at £14.75 per share implying a value of approximately $34 billion (£26 billion) for the fully diluted share capital of Sky [Source: Comcast Corporation SEC Form 8-K]. In a first-quarter 2026 trading update, revenue at ITV's M&E business declined slightly to £477 million, while ITV Studios grew 4% to £400 million.
Sources: Bloomberg, The Guardian, BBC Business, RTE, ITV News, Variety, Deadline, Comcast Corporation SEC Form 8-K