ITV (ITVPF), the 71-year-old British television company, has agreed to sell its media and entertainment arm to Sky Group, the Comcast-owned broadcaster, in a deal worth as much as 1.6 billion including debt. The transaction could reshape the UK television market by separating ITV's free-to-air channels and ITVX streaming platform from ITV Studios, its production business.
Sky will pay about 1.2 billion in cash, with another 200 million potentially tied to advertising performance. As part of the deal, Sky will also transfer Love Productions, the producer of The Great British Bake Off, to ITV Studios, while ITV Studios is expected to be listed separately after the transaction closes in the second half of 2027, subject to regulatory approvals.
For investors, the deal may be seen as a pragmatic move in a legacy media market under pressure from streaming platforms and big tech players including Netflix NASDAQ:NFLX, Meta Platforms NASDAQ:META, and Google NASDAQ:GOOG. ITV expects to return about 950 million to shareholders after reducing debt and covering separation costs, while Sky has agreed to spend at least 2.1 billion on ITV Studios between 2028 and 2032, giving the remaining production business a clearer growth and capital-return story.