Sky’s takeover of ITV’s media and entertainment business for £1.6bn will make it responsible for commissioning ITV News.
The deal sees Sky buying ITV News, ITV’s free-to-air channels in the UK and the ITVX streaming platform, with ITV Studios left out of the acquisition and becoming a standalone business.
If the deal is approved (by shareholders, Ofcom and the CMA), Sky will inherit ITV’s Public Service Broadcasting (PBS) obligations that run until 2034, which require the broadcaster to provide impartial national and regional news.
Sky has promised that ITV News and Sky News will maintain “distinct editorial identities” until at least 2030.
ITV’s current five-year contract with ITN, which produces national news bulletins at 1.30pm, 6.30pm and 10pm on ITV1, Good Morning Britain and London regional news, runs until the end of 2030 and contains no break clause, meaning Sky would inherit the agreement if the acquisition completes as planned in the second half of 2027. Other regional news ITV bulletins are produced by ITV itself.
The transaction will see ITV’s existing 40% shareholding in ITN split equally between Sky and the newly independent ITV Studios. Existing shareholders Reuters, DMG and Informa will each retain their 20% stakes.
ITN also produces news for Channel 4 and Channel 5.
An ITN spokesperson said that the “unique model” of “four editorially independent national newsrooms under one roof” – also including Good Morning Britain – contributes to the “strength of the UK’s news ecosystem”.
The takeover will result in the two businesses merging to become the UK’s largest commercial broadcaster, with Sky group CEO Dana Strong saying this means a 6.5% combined share of the total UK advertising market, according to Deadline.
Sky has also identified around £200m in annual cost savings that would be delivered by the end of the third year after the deal closed. The company said that most of the cost cuts would be made through efficiencies in marketing, technology platforms and non-UK content.
Strong has noted a “minority” of the savings from job cuts will come from reducing duplication “primarily in corporate and commercial functions”.
Sky employs around 20,000 staff in the UK, while ITV has about 2,400 workers in the media and entertainment division.
The news also follows Sky owner Comcast saying last month it plans to spin off its media operation into a separate publicly listed company, according to NBC News, which includes Sky and US film studio NBCUniversal.
On Sky becoming part of NBCUniversal, Strong said: “We have a shared cultural heritage, NBC and Sky. We’ve both been passionate about bringing sports and entertainment events to consumers.
“We have a very strong partnership where we’ve already been working on key content together, so some of our biggest shows, like The Day of the Jackal and SNL UK, were all done in a co-production environment with NBC.”
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NUJ: Merger needs to preserve jobs and local news investment
Laura Davison, National Union of Journalists (NUJ) general secretary, said the agreement follows speculation “that has caused uncertainty and anxiety for our members”.
“The NUJ reiterates the need for the new owners to preserve jobs and invest in local and regional news that continues to serve audiences across the UK,” she added.
“We note the commitment that ITV channels and ITVX will remain free-to-air, that ITV News will remain distinct from Sky News, and that ‘all public service broadcasting commitments will continue in full’ – including regional news and programming.
“The new owners must act on these promises and regulators must do their job by rigorously scrutinising the deal and protecting the public interest. The union will also continue to consult and support members to ensure their rights and terms are protected under the new ownership.”
Former Financial Times editor Lionel Barber said on X: “Sky-ITV merger is a big deal way beyond the £1.6bn acquisition price. Signals media consolidation like Skydance buying CBS News and CNN in push for scale. Major implications for news gathering and for Channel 4 and BBC. Watch this space!”
The chair of the Culture, Media and Sport Committee, Dame Caroline Dinenage MP, said “early clarification on the future of ITN” is important given the implications of the deal for the “plurality of news”, with involvement from CMA and Ofcom required.
“Today’s news reflects how British broadcasters feel the need to take steps to accelerate their growth so they can better compete with the global media streaming giants,” she said.
“A larger entity could have more clout to attract both audiences and advertising revenue. With such a major consolidation of market share, regulators the CMA and Ofcom will have to look closely to make sure the deal is in the best interests of audiences.
“Viewers will also want reassurance that there will be no impact on their favourite shows and there could also be anxiety in the sector about the impact on jobs.
“It will be important to have some early clarification on the future of ITN, which is 40% owned by ITV, given the implications of the deal for the plurality of news. ITV’s role providing regional news programmes that so many people rely on also needs to be protected.”
Carolyn McCall (DBE), CEO of ITV, said she is “confident” that Sky will be a “strong and responsible custodian” of ITV media and entertainment, including “safeguarding the qualities” of the broadcaster.
Andrew Cosslett, chairman at ITV, said: “At a time of rapid change in the industry, it is right that we now secure ITV’s crucial role as a Public Service Broadcaster and this transaction achieves this with ITV’s media and entertainment division combining with Sky to create a UK champion with the scale and resources to better compete with global streaming platforms.
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