ITV seals £1.6bn deal with Sky to create broadcasting giant

By the Editorial Team · Tuesday, July 7, 2026

Sky and ITV have agreed to merge in a £1.6 billion deal that will combine ITV’s channels and streaming service with Sky’s operations, creating a major UK media competitor. The merger aims to challenge global streaming giants like Netflix while facing thorough regulatory review due to concerns over market dominance and shifts in advertising competition.

British broadcasters Sky and ITV have agreed to a £1.6 billion deal to merge, creating a significant new player in the UK media landscape with a combined reach of more than 20 million households. The agreement will see Sky take control of ITV’s television channels and streaming platform ITVX, aiming to form a national streaming competitor capable of challenging international services such as Netflix and Disney+.

Under the terms of the deal, ITV will receive £1.2 billion in cash, while ITV Studios will acquire Sky’s Love Productions, the company behind The Great British Bake Off, for £200 million. ITV is also set to earn up to £200 million more if its advertising revenue reaches £1.7 billion in the following year. Shareholders will collectively receive around £950 million when the transaction closes. Sky will gain a 20 percent stake in ITN, the producer of major news programs including Good Morning Britain and ITV News at Ten, with ITV Studios retaining another 20 percent share. Both Sky News and ITV News are expected to continue operating separately well beyond 2030, with production remaining independent.

ITV’s chief executive, Carolyn McCall, highlighted the importance of the deal in response to significant shifts in consumer viewing habits and the rise of digital global competitors. She acknowledged that regulators will undertake a “very thorough and very comprehensive” review of the merger, likely including a phase two investigation by the Competition and Markets Authority (CMA). Channel 4 emphasized the deal’s potential to transform the broadcasting industry and called for robust regulatory scrutiny.

Analysts estimate the combined entity would command about 70 percent of television advertising spending in the UK. However, the companies argue that regulators should consider the shifting advertising market, increasingly dominated by American technology firms such as Meta Platforms and Alphabet, which own Facebook, Instagram, and YouTube. When these digital rivals are factored in, Sky Media and ITV Media’s share of the total TV and video advertising market would be just over 30 percent, according to Enders Analysis. Dana Strong, chief executive of Sky, criticized the traditional definition of the TV advertising market as outdated, given the proliferation of streaming and digital platforms. Sky, owned by Comcast, has yet to engage formally with the UK government regarding the deal.

The merger includes plans for Sky to invest £2.1 billion in ITV Studios content over five years and aims to achieve roughly £200 million in cost savings through marketing and technological efficiencies, which may involve some job reductions.

The deal follows previous efforts within the UK broadcasting sector to consolidate and strengthen offerings to compete with US streaming giants. A notable example was the failed 2009 "Project Kangaroo," in which the BBC, ITV, and Channel 4 sought to combine on-demand services but were blocked by regulators over competition concerns.

While industry analysts view the transaction as a potential positive for ITV shareholders and a strategic move to focus ITV more on production rather than ad-dependent broadcasting, some observers remain cautious about the long-term viability of the combined broadcaster amid an evolving media environment increasingly dominated by global streaming platforms.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.