Sky has agreed to purchase the broadcast channels and streaming business of Britain's ITV for £1.6 billion.
The deal aims to build a company capable of competing with international streaming giants.
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The transaction will place another British public service broadcaster under American ownership. Sky itself has been owned by Comcast since 2018.
Combined Reach and Market Power
The combination of the major pay-TV provider and the free-to-air commercial broadcaster will create an entity reaching more than 20 million households.
According to analysts, the merged operations will control over 70 percent of the television advertising market in the United Kingdom.
To address potential antitrust objections, Sky might need to give up third-party ad sales contracts. This includes its representation for Paramount-owned Channel 5.
Industry observers will monitor how regulators evaluate the consolidated media platform.
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Sky CEO Dana Strong called the agreement a "defining moment."
She indicated that the deal would ensure the continuation of high-quality domestic media programming within the shifting entertainment ecosystem.
"ITV will remain a public service broadcaster at the heart of British life, and we're excited about the future we can build together," Strong said.
The transaction will restructure ITV into a standalone production business. This entity will create content for the combined network alongside external global platforms.
Under the terms, ITV will receive £1.2 billion in cash. An earn-out structure worth up to £200 million is tied to 2027 advertising goals.
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The deal also includes the production company Love Productions.
