ITV says ‘no guarantees’ on jobs after £1.6bn Sky deal
ITV and Sky executives have said they can make no guarantees on job cuts after the two companies announced a £1.6bn merger on Monday.
Employees of ITV have been warned the tie-up between Britain’s two biggest commercial broadcasters could lead to redundancies, and there are “no guarantees” over their jobs.
Speaking after the acquisition was announced on Monday, ITV chief executive Carolyn McCall said some duplication between the businesses was inevitable, although she stressed any restructuring would take place over several years rather than immediately.
“As you’d expect, when two companies come together there will always be some duplications,” she told reporters. “No one ever gets any guarantees on anything in terms of jobs.”
The comments come as Sky chief executive Dana Strong acknowledged the takeover could result in job losses, while insisting redundancies would not make up the majority of the £200m in annual efficiencies the combined business expects to generate.
McCall suggested any overlap was more likely to come from areas such as marketing teams, technology platforms and non-UK content spending rather than ITV’s public service broadcasting obligations, adding that the integration programme would affect both organisations rather than ITV alone.
The £1.6bn transaction will see Sky acquire ITV’s Media and Entertainment division – including its free-to-air television channels and ITVX streaming platform – while ITV Studios becomes a standalone production company supplying programmes to Sky, broadcasters and global streaming services under a new £2.1bn commissioning agreement over five years.
Watchdog scrutiny looms
Before any integration can begin, however, the takeover faces what executives expect to be a lengthy review by the Competition and Markets Authority (CMA), Ofcom and ministers.
“We don’t expect it to be a quick review,” McCall said. “We know it is likely to go to phase two.”
Strong, however, said the broadcaster was “very confident” it would secure approval, arguing the transaction reflected a media market transformed by global streaming platforms rather than the broadcasting landscape regulators considered when previous television mergers were rejected.
McCall pointed to the rise of Netflix, YouTube, Amazon, Google and Meta as evidence that competition for both audiences and advertising has changed.
“The market has changed so fundamentally,” she said. “We’re no longer talking about three broadcasters competing for advertising.”
Dame Caroline Dinenage, chair of the Culture, Media and Sport Committee, said the combined powerhouse could “have more clout to attract audiences and advertising revenue” though she added that Ofcom and the CMA “will have to look closely to make sure the deal is in the best interests of audiences”.
The companies have sought to reassure politicians by committing to preserve ITV’s public service broadcasting obligations until 2034, with ITV News and Sky News remaining separate editorial operations and flagship programmes including Coronation Street, Love Island and I’m A Celebrity… Get Me Out of Here! staying free-to-air.
Executives also argued the combination would create a stronger British broadcaster capable of investing more heavily in UK-made content while competing with deep-pocketed US rivals.
Dana Strong described the acquisition as a “defining moment” for British media, while McCall called it “a milestone, big moment” that would strengthen both content production and the advertising market.
Giao Pacey, partner at media law firm Simkins, said the deal was “an acknowledgement of market reality”, with broadcasters increasingly needing greater scale to compete against streaming platforms and digital-first rivals.
But she warned the transaction would face “considerably more challenging” scrutiny from regulators as they assess its impact on competition, media plurality and consumer choice.
Analysts also see the deal as allowing ITV to sharpen its focus. Chris Beauchamp, chief market analyst at IG, said ITV could now concentrate on becoming “a global content powerhouse” and shed the lower-growth broadcasting arm that has struggled with volatile advertising revenues and rising production costs.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, also said the merger reflected the pressures facing traditional broadcasters as audiences fragment across streaming and social media.
But she cautioned that any drive for efficiencies would need to avoid eroding “the creative talent, editorial experience and institutional knowledge” that have underpinned both businesses.
The transaction is expected to complete in the second half of next year, subject to regulatory approval, with ITV planning to return around £950m to shareholders once the sale closes.