Sky Buys ITV Media Arm for £1.6 Billion, Spinning Off ITV Studios
Updated
Updated · Variety · Jul 6
Sky Buys ITV Media Arm for £1.6 Billion, Spinning Off ITV Studios
3 articles · Updated · Variety · Jul 6
Summary
£1.2 billion in cash, Sky’s £200 million Love Productions stake and up to £200 million more tied to 2027 ad performance make up Sky’s agreed purchase of ITV’s Media and Entertainment business.
ITV will separate ITV Studios into a standalone producer, use about £1.05 billion in net proceeds to cut leverage to roughly 1.5 times EBITDA, then return around £950 million—25p a share—to shareholders.
A long-term supply deal underpins the split: ITV Studios will provide shows including Coronation Street, Love Island and I’m a Celebrity under a guaranteed £2.1 billion spend from 2028 to 2032.
Sky is also taking on ITV’s Channel 3 public-service broadcasting licences through 2034, while the transaction still needs regulatory approval and is expected to close in the second half of 2027.
Comcast ultimately plans to place both Sky and the acquired ITV business inside NBCUniversal, as the companies argue the combination will better challenge global streaming rivals.