Sky has agreed to acquire ITV’s broadcast and streaming division for £1.6 billion in a deal that, if approved by shareholders and regulators, would create the largest commercial broadcaster in the UK. The acquisition includes ITV’s terrestrial TV channels and its streaming service, ITVX, but excludes ITV Studios, the production arm responsible for programs such as "I’m A Celebrity," "Love Island," and "Coronation Street."

The strategic move aims to combine the strengths of free-to-air television, pay-TV, and streaming to better compete with global streaming giants like Netflix, Amazon Prime, Disney+, and Apple TV+. Sky’s chief executive, Dana Strong, described the deal as a “defining moment for British media” that will build on the success of the two companies while preserving ITV’s role as a public service broadcaster.

Under the terms of the acquisition, Sky will pay an initial £1.2 billion for ITV’s broadcast and streaming division and transfer its own Love Productions—known for "The Great British Bake Off"—to ITV. An additional payment of up to £200 million could follow in 2028, depending on ITV’s advertising revenue performance in 2027. Sky has committed to investing at least £2.1 billion in the combined business between 2028 and 2032.

Both Sky and ITV have emphasized that the deal will not affect ITV’s key programming or its free-to-air availability. ITV’s public service broadcasting commitments, including regional and national news, are expected to be maintained, with the broadcaster legally required to remain free-to-air until at least 2034. Sky has also pledged to air only original programming during the critical 6pm to 9:30pm evening slot, avoiding repeats during primetime.

However, concerns around potential job losses have emerged. Sky has signaled that the merger could lead to redundancies, particularly in corporate and commercial roles where there is overlapping staff between the two organisations. It aims to achieve roughly £200 million in annual cost savings within three years through operational efficiencies in areas such as technology, marketing, and overseas content. While the number of affected jobs has not been specified, ITV’s chief executive Carolyn McCall acknowledged the uncertainty but indicated that overlapping roles would be reviewed.

The transaction will also see Sky gain an indirect 20 percent stake in ITN, the company producing ITV News and several regional news programs, while ITV will retain a 10 percent stake. Both companies anticipate a comprehensive 12 to 18-month regulatory review before the deal can be finalised. Members of Parliament and industry observers have called for close scrutiny to ensure the deal serves the interests of audiences and preserves public service broadcasting standards.

The combination of Sky and ITV’s broadcast and streaming units responds to shifting market conditions, where rising production costs and stalled advertising growth have challenged traditional broadcasters in their competition against large international streaming services. ITV Studios will continue as a standalone public company, focusing on content production with a long-term output deal supplying programming to the combined broadcaster.

Overall, the deal marks a significant consolidation in UK media, with the potential to reshape the competitive landscape in television and streaming while seeking to safeguard public service content and regional news provision.