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Sky has agreed to buy ITV for a whopping £1.6billion to become the largest commercial broadcaster in the UK.
The sale will see Sky take over ITV’s media and entertainment arm, with online streaming platform ITVX and all free-to-air channels included.
The move has been in the works for a while now, first revealed last November and still must go through regulatory approval.
ITV’s studio operations are not said to be included in the deal, which the Guardian reports includes £1.2billion in cash.
‘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,’ ITV chair Andrew Cosslett said.
‘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.’
All of ITV’s public service commitments will be maintained under the deal.
What does this mean for your favourite shows?
Good news for fans of Love Island, Emmerdale, and I’m A Celebrity, any show made by ITV Studios will largely remain the same.
The production arm, which owns over 60 production companies, isn’t being sold to Sky, so any show made by them shouldn’t have a huge overhaul.
ITV Studios also makes popular shows like Line of Duty for the BBC, Rivals for Disney Plus and more.
However, content on ITV itself could gradually move behind a paywall, although the company’s public service broadcasting licence states they must provide free-to-air service until at least 2034.
It’s possible that some less popular shows might get the axe, with the studio then able to find a new platform or cancel filming altogether.