ITV Plc has agreed to sell its broadcasting and entertainment business to Comcast-owned Sky Group Ltd. for up to £1.6 billion, including debt. The deal will reshape the UK television industry and split ITV’s broadcasting and production businesses.

Sky will pay about £1.2 billion in cash. It could also pay up to £200 million more if the business meets advertising targets. The agreement includes the transfer of Love Productions, the company behind The Great British Bake Off, to ITV Studios.

The companies expect to complete the deal in the second half of 2027, subject to regulatory approval.

Sky Expands Its Entertainment Business

Sky wants to strengthen its entertainment business as competition from streaming platforms continues to grow. The company said the larger business will have more bargaining power with advertisers. It also expects to compete better with global rivals such as Netflix, Meta Platforms and Google.

After the deal closes, ITV Studios will become a separately listed company. Sky has also agreed to spend at least £2.1 billion on ITV Studios between 2028 and 2032. The production company makes popular programmes such as Coronation Street, Emmerdale and Love Island.

ITV expects to return about £950 million to shareholders after paying down debt and covering separation costs.

Regulatory Approval in Focus

Industry experts expect regulators to closely examine the deal because it combines two major broadcasters.

“This transaction is a pragmatic response to a changing market rather than a transformational bet,” Giao Pacey, partner at media and entertainment law firm Simkins LLP, said in an email.

“The key question now is whether regulators are prepared to accept that creating a stronger UK media champion can be achieved without compromising competition, consumer choice or media plurality.”