British television network, ITV, has agreed the sale of its media and entertainment business to Sky for up to £1.6 billion, the companies have announced.
The agreement, subject to regulatory approval, follows months of talks, with the proposed sale first announced in November last year.
The companies said the deal will combine the division with Sky to create a major competitor to the global streaming giants.
The deal includes the ITVX platform, along with ITV’s free-to-air channels, but not its production arm, ITV Studios, which makes shows including I’m A Celebrity and the popular drama, Mr Bates Vs The Post Office.
ITV Studios will become a ‘pure-play global content business’ with its shares listed on the London Stock Exchange following the sale, and a long-term agreement to supply content to the newly-combined Sky and ITV, according to the broadcaster.
The transaction is expected to be completed in the second half of 2027.
Sky has committed to spending at least £2.1 billion over 2028-2032 on the partnership.
Under the terms of the deal, Sky will pay £1.2 billion for the broadcasting unit and sell its Love Productions business to ITV, which makes shows including the Great British Bake Off and The Piano, and is valued at £200 million.
ITV may also receive a payment of up to £200 million in two years, subject to its advertising sales performance.
