Sky buys ITV for £1.6bn to take control of broadcasting arm

A big change

The deal will see Sky acquire the media and entertainment division of ITV, including ITVX and all of its free-to-air channels.

The takeover has been a long time coming, with details first being revealed last November.

The move must still first receive regulatory approval.

ITV’s studio operations are not said to be included in the deal.

ITV chair Andrew Cosslett said: "At a headline value of up to £1.6bn, the sale of ITV’s M&E division will deliver a significant cash return to shareholders.

"Crucially, the transaction also unlocks the value of ITV Studios, which post completion will be a distinctive pure-play global content business, with a strong track record of success and excellent prospects, further underpinned by a long-term partnership with ITV M&E and Sky."

Shareholders should see about 25p per share, as £950m in cash will be given to them in the sale. 

Sky chief executive Dana Strong said: "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."

ITV’s will continue all its public service commitments under the deal.

Many popular ITV shows will likely remain untouched as these are mostly by ITV Studios who owns over 60 production companies and aren't part of the Sky deal.