ITV is selling its media and entertainment divisions to Sky in a £1.6bn deal that the companies say will create a strong rival to global streaming giants.
ITV is selling its media and entertainment divisions to Sky in a £1.6bn deal that the companies say will create a strong rival to global streaming giants.
The sale includes ITV's broadcast channels and its ITVX streaming service, and Sky chief executive Dana Strong called it "a defining moment for British media".
The sale includes ITV's broadcast channels and its ITVX streaming service, and Sky chief executive Dana Strong called it "a defining moment for British media".
It is one of the biggest takeovers in British media history, with American-owned Comcast - which owns Sky - having started takeover talks in November last year.
It is one of the biggest takeovers in British media history, with American-owned Comcast - which owns Sky - having started takeover talks in November last year.
last year.ITV's studio arm, which makes popular programmes such as Love Island and I'm a Celebrity... Get Me Out of Here, is not included in the deal.
ITV's studio arm, which makes popular programmes such as Love Island and I'm a Celebrity... Get Me Out of Here, is not included in the deal.
"The UK media market is undergoing a profound and rapid transformation, and as competition for audiences intensifies, scale matters more than ever in order to compete with global streaming giants and YouTube in the UK," Sky Group said in a statement.
"The UK media market is undergoing a profound and rapid transformation, and as competition for audiences intensifies, scale matters more than ever in order to compete with global streaming giants and YouTube in the UK," Sky Group said in a statement.
The firm said there would be no immediate change to popular shows.
The firm said there would be no immediate change to popular shows.
"Viewers will continue to enjoy the shows they know and love, such as Coronation Street, Emmerdale, Love Island, I'm a Celebrity... Get Me Out of Here!, This Morning, Loose Women, Lorraine and News at Ten – alongside major live sporting events," Sky added.
"Viewers will continue to enjoy the shows they know and love, such as Coronation Street, Emmerdale, Love Island, I'm a Celebrity... Get Me Out of Here!, This Morning, Loose Women, Lorraine and News at Ten – alongside major live sporting events," Sky added.
ITV is required by law to provide a free-to-air service until at least 2034 under its public service broadcasting licence.
ITV is required by law to provide a free-to-air service until at least 2034 under its public service broadcasting licence.
The takeover is still subject to approval from regulators, but when it is completed ITV Studios will become a standalone business.
The takeover is still subject to approval from regulators, but when it is completed ITV Studios will become a standalone business.
Under the terms of the deal, ITV will receive £1.2bn in cash and Sky's Love Productions business, whose shows include Great British Bake Off, which is valued at £200m. ITV will also get a further £200m in 2028 if it meets advertising revenue targets.
Under the terms of the deal, ITV will receive £1.2bn in cash and Sky's Love Productions business, whose shows include Great British Bake Off, which is valued at £200m. ITV will also get a further £200m in 2028 if it meets advertising revenue targets.
Sky said it had also agreed to spend £2.1bn on content from ITV Studios over a five-year period.
Sky said it had also agreed to spend £2.1bn on content from ITV Studios over a five-year period.
Susannah Streeter, chief investment strategist at Wealth Club, said the deal would be a "significant step in the reshaping of Europe's media landscape".
Susannah Streeter, chief investment strategist at Wealth Club, said the deal would be a "significant step in the reshaping of Europe's media landscape".
"Traditional broadcasters are having to change tactics fast in the battle for audiences whose attention is increasingly fragmented across streaming platforms, social media and online video, making advertising revenues harder to sustain," she said.
"Traditional broadcasters are having to change tactics fast in the battle for audiences whose attention is increasingly fragmented across streaming platforms, social media and online video, making advertising revenues harder to sustain," she said.
Streeter added that the key challenge would be ensuring that moves to cut costs did not come "at the expense of the creative talent, editorial experience and institutional knowledge that have underpinned both organisations' success."
Streeter added that the key challenge would be ensuring that moves to cut costs did not come "at the expense of the creative talent, editorial experience and institutional knowledge that have underpinned both organisations' success."
