ITV to sell media and entertainment arm to Sky for £1.6bn

ITV is selling its media and entertainment units for £1.6bn, which the companies say will create a strong rival to the global streaming giants.

The sale includes ITV’s broadcast channels and its ITVX streaming service, although the company’s studio arm is not included in the deal.

It is one of the biggest in British media history, after US-owned Comcast – which owns Sky – began takeover talks in November. last year.

Sky chief executive Dana Strong called it a “crucial moment for British media”.

“The UK media market is undergoing profound and rapid change, and as competition for audiences intensifies, it is more important than ever to compete in the UK with global streaming giants and YouTube,” Sky Group said in a statement.

The company says there will be no immediate changes to popular shows.

“Viewers will continue to enjoy the shows they know and love – Coronation Street, Emmerdale, Love Island, I’m A Celebrity… Get Me Out!, This Morning, Loose Women, Lorraine and News at Ten – alongside major live sporting events,” Sky said in a statement.

ITV is required by law to provide free-to-air services until at least 2034 under its Public Service Broadcasting licence.