Salford
ITV to be bought out by Sky in transformational British broadcasting deal worth £1.6 billion
Danny Jones
In a watershed moment for British broadcasting, Sky has reached a transformational agreement worth more than £1.6 billion to buy out ITV in a landmark takeover deal.
With Sky already owned by US telecommunications corporation Comcast, this is set to be one of the biggest shakeups in TV and streaming for some time.
Talks actually started last November, but the process to complete a buyout like this has obviously taken a significant amount of time and money already.
It’s also worth noting that the deal is still pending full approval from the relevant regulators; nevertheless, it’s fair to say that it could change the face of the British media giants – who are based here in Greater Manchester over at MediaCity – but might signal a significant overhaul of our media landscape.
The Sky Group have assured there will be no immediate change to popular shows and will not be put behind a paywall at present (for now, anyway), with ITV still under a free-to-air service until 2034 as part of its public licensing contract.
Aquisitons/mergers of this size like this don’t come around very often, at least not across this side of the pond, with the growing Disney’s growing multinational monopolisation being one of the biggest examples of conglomerates mopping up major networks and huge brands over the past decade.
Writing in a statement, Sky said: “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.
“Viewers will continue to enjoy the shows they know and love, such as Coronation Street, Emmerdale, Love Island, I’m a Celebrity… Get Me Out of Here!, This Morning, Loose Women, Lorraine and News at Ten – alongside major live sporting events.”
That lattermost example feels particularly poignant at the moment, as this also means that the likes of ITV’s impressive World Cup coverage will come under the Sky umbrella in the near future.
It’s being seen as an ambitious attempt to shake up traditional terrestrial telly and digital platforms, with the ‘old guard’, as it were, having to move forward and fast to keep up with the mercurial market becoming evermore dominated by streaming services.
Of course, there are plenty raising questions and concerns over yet another domestic institution becoming deeper and deeper entwined with big American business; on the other hand, former ITV chairman Sir Peter Bazalgette, who still owns shares, says the deal was “essential” for its survival.
ITV will also receive £1.2bn in cash and Sky’s Love Productions business in return for ownership of their media and entertainment arm, whose shows include the Great British Bake Off.
Moving forward, ITV will also get a further £200m in 2028 if they meet revenue targets when it comes to advertising, with Sky promising to spend over £2.1bn on content from ITV Studios over a five-year period. You can read the full update from ITV right HERE.
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Featured Images — James West (via Flickr)/Publicity picture
The Manc -
7th June 2021 
