6th Jul 2026 08:54
(Alliance News) - ITV PLC on Monday said it will return GBP950 million to shareholders after agreeing to sell its Media & Entertainment business to Sky, a wholly owned subsidiary of Comcast Corp, for up to GBP1.6 billion.
Through the deal, the London-based television broadcaster and content producer will receive GBP1.2 billion in cash, Sky's Love Productions business valued at GBP200 million, and up to GBP200 million in cash, payable in the second half of 2028 and linked to 2027 advertising performance.
ITV said the deal, which is expected to complete in the second half of 2027, "unlocks" the value of ITV Studios, which will be a distinctive "pure-play global content business".
ITV will incur transaction and separation costs of GBP185 million gross, or GBP155 million net of tax, to be incurred over the next three to four years.
Proceeds will first be used to de-lever ITV Studios to around 1.5 times net debt to earnings before interest, tax, depreciation and amortisation post-completion. ITV then expects to return around GBP950 million to shareholders following completion, equivalent to 25 pence per share.
On completion, ITV and Sky will also enter a long-term strategic partnership, including a content supply agreement with a minimum spend commitment of GBP2.1 billion over 2028 to 2032.
Shares in ITV were up 1.2% at 82.69 pence each in London on Monday morning. Comcast closed up 0.3% at USD23.79 on Thursday.
ITV plans to hold a capital markets day before completion of the deal, where management will provide further detail on the company's strategy, financial performance and medium-term outlook as a standalone business. ITV's dividend policy will remain unchanged in the period to completion.
The company said the deal represents an "attractive" outcome for shareholders.
"The combined business brings together ITV's free-to-air strengths, Sky's pay-TV capabilities and advanced technology infrastructure," it said.
ITV said expectations for the current year remain unchanged.
Following Comcast's planned separation, Sky and ITV Media & Entertainment are expected to become part of NBCUniversal upon completion of both transactions.
By Jeremy Cutler, Alliance News reporter
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