ITV Backs Sky Deal With £200 Million Earn-Out as CEO Braces for Phase 2 Review

3 articles · Updated · Variety · Jul 6

Up to £200 million in extra consideration hinges on ITV’s 2027 advertising revenue topping £1.7 billion, with the full payout triggered at £1.8 billion; current analyst consensus is about £1.75 billion.
Carolyn McCall said ITV approached Sky first and had long viewed it as its preferred partner, arguing the merger answers post-pandemic viewing shifts and the growing scale of global streamers in the U.K.
A phase-two regulatory review and public-interest test are expected, but McCall said Sky and ITV would hold only about 20% of the video advertising market combined, framing the deal as a response to much broader competition.
Job cuts remain possible in overlapping areas such as marketing, technology and non-U.K. content, while ITV said ITV Studios will launch as an independent listed company even as consolidation pressure across U.K. media persists.

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ITV Agrees Sale Of Media & Entertainment Business To Sky For Up To £1.6 Billion

6 Sources

With ITV Studios spun off, will independent creators be championed by the new Sky-ITV entity or squeezed out?

Will the Sky-ITV merger create a UK streaming champion or push more beloved shows behind a paywall?

Can UK regulators approve a national media giant when global streamers have already rewritten the rules of competition?

Sky-ITV Merger Under Scrutiny: £1.6 Billion Deal, Regulatory Challenges, and the Future of UK Broadcasting

Overview

The proposed Sky-ITV merger, valued at £1.6 billion with an additional £2 billion content pledge for ITV Studios, stands as a major development in the UK media landscape as of July 2026. These significant financial commitments were seen as a core structural hurdle during negotiations, highlighting their importance for both the deal’s viability and regulatory approval. The UK government’s proactive regulatory stance means the merger faces thorough scrutiny, especially regarding market dominance and public service broadcasting. Overall, the deal’s structure and commitments are designed to address regulatory concerns and ensure the continued strength and accessibility of British media content.

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