Sky edges closer to ITV takeover as negotiations enter final phase
May 14, 2026 10.47 Europe/London By Julian Clover


From ITV
Sky and ITV are understood to be closing in on a deal that would reshape the UK television market, with industry sources suggesting an agreement could be reached within weeks.

The proposed transaction would see Sky acquire ITV’s Media & Entertainment division — including the ITV channel portfolio and ITVX streaming service — while ITV shareholders retain ownership of ITV Studios, the production arm behind shows including Love Island, I’m A Celebrity… Get Me Out of Here! and The Voice.

According to ITV News, negotiations between the parties have intensified in recent weeks, with growing confidence on both sides that key commercial terms are being resolved.

The proposed £1.6 billion (€1.86 billion) transaction was first revealed last November, but talks have proved complex because of the need to untangle ITV’s broadcast and production operations after decades of integration.

Under the structure currently under discussion, ITV Studios would continue supplying programming to ITV channels under long-term content agreements. Those arrangements are expected to cover flagship entertainment and drama brands including Coronation Street and Emmerdale.

The deal would also reportedly involve elements of Sky’s production interests moving into ITV Studios, including assets connected to Love Productions, producer of The Great British Bake Off.

For Sky, the transaction would significantly expand its free-to-air television footprint at a time when traditional pay-TV faces mounting pressure from streaming competitors including Netflix, Disney+ and YouTube.

The proposed acquisition would combine ITV’s scale in advertising-funded broadcasting with Sky’s subscription television, broadband and streaming operations.

Industry observers believe the logic behind the deal lies in creating a larger UK-based media player capable of competing more effectively with global technology and streaming platforms.

The transaction would also further strengthen Sky’s streaming ambitions. ITVX has become one of the UK’s largest ad-supported streaming services, while Sky continues repositioning itself as an aggregation platform combining its own services with third-party apps including Netflix and HBO Max.

However, the deal is expected to face regulatory scrutiny.

The Competition and Markets Authority, Ofcom and the Department for Culture, Media and Sport would all likely examine the transaction closely, particularly around advertising concentration, public service broadcasting obligations and news plurality.

One sensitive issue concerns ITV’s 40% stake in ITN, which supplies news programming not only for ITV, but also Channel 4 and Channel 5. Questions are expected over whether Sky and Comcast could exert excessive influence over multiple UK television news providers.

According to ITV News, Sky is prepared to commit to maintaining ITV’s public service broadcasting obligations through to 2034, including requirements covering regional news, current affairs and UK-originated programming.

The proposed deal also arrives amid broader structural pressures across UK broadcasting.

Linear advertising revenues continue to face long-term decline, while both ITV and Sky are investing heavily in streaming and digital distribution. ITVX recently reported record monthly streaming performance, while Sky has doubled down on premium sport, extending its Formula 1 rights in the UK until 2034.

Sources close to the discussions argue the combined business would represent “a good-sized player in a world of giants”, capable of defending UK broadcasting against growing international competition.