ITV has agreed the sale of its media and entertainment arm to Sky for up to £1.6 billion after months of talks over a possible deal.
The companies said the deal will combine the division with Sky to create a major competitor to the global streaming giants.
The sale includes ITV’s terrestrial TV channels and streaming service ITVX.
But it does not include 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.
Dana Strong, Sky’s group chief executive, said: “Bringing Sky and ITV Media & Entertainment together combines the very best of free-to-air television, pay TV and streaming, ensuring viewers across the UK continue to enjoy outstanding British programming in a rapidly changing world.
“ITV will remain a public service broadcaster at the heart of British life, and we’re excited about the future we can build together.”
