With the acquisition, Sky hopes to broaden its engagement with a younger, digital-first audience, while enabling Sky Media to offer greater brand-safe digital opportunities to advertisers.
Sky also aims to become a top-five social destination for sport in all its territories and globally.
Diagonal View has an online audience of more than 15 million subscribers and hosts content that ranges from quantum physics, to The Fresh Prince of Bel Air. Its main sports channel, The Football Daily, reaches hundreds of thousands of fans on a daily basis.
According the company's latest filing on Companies House however, Diagonal View is still in the red with net liabilities for the year ending 31 March 2016 of £542,937.
Sky declined to share the terms of the acquisition.
"Diagonal View knows how to make content that digital natives enjoy watching and engaging with, so this partnership feels like a natural win-win for both us and Sky," Matt Heiman, founder of Diagonal View, said.
Sky's advertising sales arm, Sky Media, will have the chance to sell the extended reach and content creation abilities of Diagonal View.
Jamie West, Sky Media's deputy managing director and group director of advanced advertising for Sky, said: "Advertisers are looking for high impact, multi-faceted campaigns and want to partner with trusted brands with quality content."
"By combining strengths, we’ll significantly enhance opportunities for branded content, building new and existing partnerships to a wider audience at further scale."
Diagonal View’s existing leadership team, including founder Matt Heiman, will continue to lead the business within the wider Sky Group.
At Sky, West and David Gibbs, director of digital sports and news at Sky, will be supporting Diagonal View's integration and growth.