ITV has reached an agreement on a £1.6 billion takeover by Sky, bringing together the companies’ media and entertainment operations after months of negotiations.
The transaction, which still requires approval from shareholders and regulators, will establish the UK’s largest commercial broadcasting group. Initial plans for the merger were first disclosed in November.
The move is designed to strengthen the companies’ position in the streaming market and create a major UK-based platform capable of competing with global services such as Netflix and Amazon Prime Video. According to Sky chief executive Dana Strong, the combined streaming service is expected to attract more than 16 million monthly viewers.
The agreement covers ITV’s streaming platform ITVX and its free-to-air television channels, while ITV Studios is excluded from the deal.
Sky confirmed that ITV’s flagship channels will continue to be available free-to-air, with popular programmes including Coronation Street, Emmerdale, I’m a Celebrity… Get Me Out of Here! and Love Island remaining free for viewers.
The merger is also expected to significantly strengthen ITV’s sports coverage, with Sky saying the new partnership will deliver more free-to-air sporting content than ever before across ITV’s services.
All ITV public service broadcasting commitments are to be maintained under the deal, while Sky said ITV News and Sky News are set to remain distinct editorial voices.
Speaking to Sky News, Ms Strong did not give a number of possible job losses as part of the purchase, but said they would be in commercial and corporate functions.
“There is some duplication in roles in corporate functions and commercial functions as there is when you bring, inevitably, two organisations together. But it’s the minority of the synergy.”
Sky had said about £200m in annual cost savings could be realised by the purchase
“We need to get a little bit closer to the to the businesses to look at where exactly the overlaps are,” Ms Strong added.
