Sky & ITV Near $2.1B Deal — Official Announcement Expected Soon!

Sky and ITV are finalizing a massive £1.6 billion ($2.1 billion) purchase agreement that could significantly alter the landscape of UK broadcasting, with an official announcement expected within the next two weeks, sources tell Reuters.

In a recent update, Reuters affirmed earlier reports that Love Productions, known for creating The Great British Bake Off, is included in the sale to ITV Studios.

This transaction specifically involves ITV’s Media & Entertainment sector rather than its Studios arm, which focuses on production and distribution. The talks, which began surfacing late last year, saw ITV confirming in May that negotiations with Sky were ongoing. Reuters now reports that lawyers are putting the final touches on the deal, with an announcement expected soon.

ITV Studios, the creator of popular shows such as Love Island and Squid Game: The Challenge, will absorb Love Productions. This acquisition is a significant asset, especially considering the value of the Great British Bake Off brand. Sky initially purchased 70% of Love Productions in 2014 and acquired the remaining shares in 2020. Richard McKerrow, the founder of Love Productions, stepped down last year.

At a recent industry leadership conference, ITV’s chief Carolyn McCall delivered a compelling speech describing the Media & Entertainment division, which includes ITV channels and the streaming service ITVX, as “extremely resilient and cash generative.”

McCall highlighted the transformation of the network over the past six or seven years, noting its recognition among investors as a robust enterprise. This morning, ITV’s stock price increased by 2.5%. A quarterly financial update revealed a slight decrease in revenue for the Media & Entertainment division to £477 million, while ITV Studios saw a revenue increase of 4% to £400 million, with further growth anticipated.

While Comcast, the American media conglomerate, owns Sky, it is reported that Sky is taking the lead on this transaction with Comcast acting in a supporting role. The approval of the deal will be up to regulatory bodies like Ofcom and the Competition Markets Authority, and it raises questions about the future of the news operations at both Sky and ITV. Currently, ITV News is produced by ITN, which also creates news for Channel 4 and 5.

ITV has not provided a comment on the matter. Deadline has reached out to Sky for a response.