Sky, part of Comcast Corporation, has agreed terms to acquire ITV Media & Entertainment from ITV for £1.6 billion (USD2.1 billion), comprising £1.2 billion in cash, Love Productions, and £200 million in performance-related earn-out.
Sky and ITV Media & Entertainment will combine free-to-air broadcasting, advertising-funded streaming and subscription television together with Sky’s portfolio of broadband, mobile and business services.
Following completion, ITV channels and ITVX will remain free-to-air, with its public service broadcasting commitments continuing to be met in full.
ITV already reaches around 40 million people weekly and serves more than 16.5 million monthly digital users. Combined with Sky, the business would account for around 20 percent of all in-home viewing in the U.K.
Dana Strong, Sky Group CEO, said: “This is a defining moment for British media and an opportunity to build a stronger future for two of the U.K.’s most loved and trusted brands. We have huge respect for the transformation the ITV team has delivered, particularly its successful move into streaming through ITVX, which has brought fantastic British content to millions of viewers across the U.K.”
Carolyn McCall, ITV CEO, said: “Through the commitments made by Sky, the combined ITV M&E / Sky business will continue to deliver everything about ITV that our viewers and advertisers love and value and our people are hugely proud of — making programs that reflect and shape society, bringing people together for shared experiences and having the quality, diversity and plurality that are the hallmarks of our contribution to the U.K.’s creative industries. In addition, all of ITV’s PSB commitments, including regional and national news, are safeguarded under the terms of the Channel 3 Licences until 2034, which Sky is acquiring as part of the transaction.”
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