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Sky announces that it has agreed terms to acquire ITV Media & Entertainment from ITV plc for a total consideration of up to £1.6 billion (subject to adjustment for cash, debt and net working capital). This comprises £1.2 billion in cash, Love Productions, and up to £0.2 billion in performance-related earn-out, subject to customary conditions and regulatory approvals, as they have claimed in a statement.

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. Audiences will continue to have access to the programmes, alongside national and regional news. Sky will continue to offer entertainment, sport, and market-leading connectivity.

Together, both companies look forward to building a stronger UK media business to protect and strengthen commercially-funded public service broadcasting.

With this objective, Sky and ITV have established their commitments:

• ITV’s channels and ITVX will remain free-to-air.
• ITV’s public service broadcasting commitments will continue in full.
• ITV News and Sky News will remain distinct editorial voices.
• The will invest in more British content, more free-to-air sport and an enhanced streaming experience.
• They will keep supporting the UK’s creative industries for the long term.

“This is a defining moment for British media and an opportunity to build a stronger future for two of the UK’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 UK. Bringing Sky and ITV Media & Entertainment together combines the very best of free-to-air television, pay TV and streaming, ensuring viewers across the UK continue to enjoy outstanding British programming in a rapidly changing world. ITV will remain a public service broadcaster at the heart of British life, and we’re excited about the future we can build together”, explains Dana Strong (CBE), Sky Group CEO.

“ITV has successfully evolved in a rapidly changing media landscape – launching, and scaling, ITVX and developing ITV Studios into a major force in the global content market. This transaction builds on that momentum to deliver clear, tangible value for shareholders”, adds Carolyn McCall (DBE), Chief Executive Officer, ITV plc.

“At the same time, 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 programmes 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 UK’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.  I am also confident that Sky will be a strong and responsible custodian of ITV M&E, building on its heritage while investing in its future and safeguarding the qualities that make ITV so valued by viewers, advertisers and the UK’s creative industries”, she concludes.