Sky, one of Europe’s leading media and connectivity companies and part of Comcast Corporation, today 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), comprising £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
The proposed transaction brings together two of the UK’s most trusted, recognisable and complementary media organisations to create a stronger media business with the reach and capabilities to sustain investment in great British programming, strengthen trusted news and deliver more for audiences
The UK media market is undergoing a profound and rapid transformation, and as competition for audiences intensifies, scale matters more than ever in order to compete with global streaming giants and YouTube in the UK. Together, Sky and ITV Media & Entertainment will combine free-to-air broadcasting, advertising-funded streaming and subscription television together with Sky’s wider portfolio of broadband, mobile and business services. The diversity of revenue streams of the combined entity provides a resilient and durable business model which will underpin its long-term success.
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 enjoy the programmes they know and love, alongside trusted national and regional news. Sky will continue to be the home of world-class entertainment, unmissable sport, and market-leading connectivity
ITV already reaches around 40 million people every week and serves more than 16.5 million monthly digital users. Combined with Sky, the business would account for around 20% of all in-home viewing in the UK, second to the BBC and ahead of YouTube, and create a commercial streaming champion for the UK.
Read the full press releasehere.
