Sky agrees terms to buy ITV's broadcast unit in £1.6B deal

Sky, the British pay TV group owned by Comcast, has reportedly agreed on terms to purchase ITV's broadcast and streaming unit. The deal, valued at approximately £1.6 billion, also involves ITV acquiring Love Productions, the producer behind popular shows like 'The Great British Bake Off' and 'The Piano'.

Sources familiar with the matter indicated that the transaction has progressed positively in the past week and is currently being finalized by legal teams. The valuation of Love Productions is estimated to be between £80 million and £120 million, with an additional earn-out payment potentially reaching £200 million, contingent on the unit's performance.

While a deal announcement is anticipated within the next two weeks, one source cautioned that final legal complexities could still cause delays. This potential acquisition marks the culmination of a process that began last year, with ITV publicly stating its talks to sell the unit, known as Media & Entertainment, to Sky in November. The transaction requires the separation of ITV's channels and streaming platform, ITVX, from its production arm, ITV Studios, which will operate as a separate entity post-completion.