Sky, owned by US telecoms giant Comcast, is in advanced negotiations to acquire ITV’s broadcasting and streaming operations in a deal potentially worth £1.6bn. As part of the transition, Sky has committed to spending £2bn on ITV Studios over the next five years to secure the future of flagship programs like Coronation Street and Love Island, according to reports from the Sunday Times.
How would a Sky-ITV merger reshape UK television?
The proposed takeover would see ITV’s free-to-air channels and the ITVX streaming platform absorbed into Sky’s portfolio, creating a dominant force in the UK media market. According to the Sunday Times, the acquisition would exclude ITV Studios, which would remain an independent entity listed on the London Stock Exchange. This separation ensures that the production arm can continue to sell content to rival broadcasters and streaming platforms globally, maintaining its position as a major content creator.
ITV Studios accounted for more than half of ITV’s £4.1bn annual revenue in 2025, producing global hits including Mr Bates vs the Post Office and I’m a Celebrity… Get Me Out of Here!
What are the regulatory hurdles for the deal?
Regulators, including the Competition and Markets Authority (CMA) and Ofcom, are likely to scrutinize the deal due to the concentration of market power. Industry sources suggest that the combined entity could control over 70% of the UK television advertising market. To gain approval, Sky may be forced to relinquish third-party ad sales contracts, such as its current representation of Channel 5 and Disney, according to reports. Additionally, Ofcom is expected to investigate the implications of Sky, which owns Sky News, taking control of ITV’s 40% stake in ITN, the news provider for ITV, Channel 4, and Channel 5.
Why is Sky targeting ITVX?
Sky aims to build a “streaming champion” to compete with global subscription giants like Netflix, Amazon Prime, and Disney+. ITVX recorded 16.5 million monthly active users in 2024, providing Sky with a ready-made, high-traffic ad-supported platform. While the deal promises to scale operations, analysts cited in the Sunday Times report predict that significant job losses could follow as the new owners look to eliminate operational duplication between the two media companies.
Pro Tip: The Shift in Ad Markets
Keep an eye on how the CMA defines the “advertising market.” If the regulator decides to include digital and social media giants in their assessment, the market share of a combined Sky-ITV may appear smaller, potentially easing the path for the merger.
Frequently Asked Questions
- Will ITV Studios be sold to Sky? No. According to current reports, ITV Studios will remain a standalone company listed on the London Stock Exchange.
- What happens to shows like Coronation Street? Sky has committed to a £2bn spend on ITV Studios over five years, which is intended to safeguard the production of major shows like Coronation Street and Emmerdale.
- Why is the CMA involved? The CMA investigates mergers to ensure competition. Because a merger could give Comcast control over 70% of UK TV ad sales, the regulator will likely mandate changes to prevent a monopoly.
- Is this a new investment? No. Sources indicate that the £2bn spending commitment is a continuation of existing commercial arrangements between the two parties.
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