Sky nears £1.6B ITV unit deal with performance-based payout
Synopsis
Sky’s talks to acquire ITV’s Media and Entertainment division come as television groups worldwide continue reshaping streaming and advertising strategies. The proposed £1.6 billion deal reflects broader industry pressure on traditional broadcasters facing weaker advertising revenue, rising streaming competition and growing demand for digital scale across television and entertainment markets.
Sky is advancing ITV acquisition talks as broadcasters worldwide adjust streaming strategies and face weaker television advertising markets.
Key Highlights
- Sky is advancing talks to acquire ITV’s Media and Entertainment division for around £1.6 billion.
- ITV reported £4.12 billion revenue for 2025, while digital revenue increased 10% year over year.
- ITVX remains central to ITV’s streaming strategy amid stronger competition from global platforms.
- Broadcasters globally continue restructuring streaming and advertising businesses as market pressures increase.
Comcast-owned Sky is moving closer to a deal to acquire ITV’s Media and Entertainment division in a transaction valued at about £1.6 billion. The talks come as broadcasters across several major markets continue adjusting to weaker television advertising and rising streaming costs.
The proposed transaction includes ITV’s free-to-air television business and streaming platform ITVX. ITV Studios, the company’s production arm behind international programs sold worldwide, is expected to remain separate.
Broadcasters Rework Streaming Strategy
The latest Sky-ITV discussions arrive as media companies continue reshaping their streaming businesses after years of heavy spending on digital platforms.
Disney, Warner Bros Discovery, and Paramount have all cut costs, combined services or restructured parts of their television businesses over the past two years. Comcast itself recently expanded Peacock’s sports and entertainment strategy as competition for subscribers intensified.
Research firm Ampere Analysis estimated global streaming subscriptions passed 2 billion in 2025, with growth led by India, North America and parts of Europe. At the same time, traditional television advertising markets remain under pressure in several countries, including Britain, Germany and Australia.
ITVX Growth Remains Central
ITV reported total revenue of £4.12 billion for 2025 in results released in March. Adjusted EBITA reached £534 million, while digital revenue rose 10% year over year. Advertising revenue, however, fell 5.3% to £1.72 billion.
ITVX has become a central part of ITV’s digital strategy as broadcasters push ad-supported streaming services to compete with Netflix, YouTube and Amazon Prime Video.
Reuters earlier reported negotiations had slowed because of the difficulty of separating ITV’s broadcast operations from ITV Studios. Talks later resumed, with discussions now focusing on a structure that includes performance-linked payouts tied to future business results.
Industry Consolidation Back in Focus
The latest Sky developments also follow renewed consolidation discussions across the global media sector as companies search for scale in streaming, sports rights and advertising technology.
Sky operates in the UK, Ireland, Germany, Austria, Switzerland and Italy, while Comcast remains one of the largest broadband and entertainment companies globally.
Neither Sky nor ITV publicly commented following the latest Reuters report.
FAQs
Q1. Why is Sky interested in ITV’s Media and Entertainment division?
The division includes ITV’s broadcast channels and ITVX streaming platform, which could strengthen Sky’s television and digital advertising business.
Q2. What parts of ITV are expected to remain outside the deal?
ITV Studios, the company’s production and international content business, is expected to remain separate from the proposed transaction.
Q3. Why are broadcasters pursuing more consolidation deals now?
Media companies are facing slower television advertising growth and stronger competition from global streaming platforms, increasing pressure to scale digital operations.
Follow Inspirepreneur Magazine for daily global business news.
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
You Might Also Like
Aerospace supplier Arxis raises $1.13B in upsized US IPO
NSW Storms Leave 100,000 Without Power Statewide
