Sky deal for ITV broadcast and streaming assets nearly finalised – Reuters

ITVX reality competition series Love Island

Comcast-owned Sky has reached terms to buy UK free-to-air commercial broadcaster ITV’s broadcast and streaming unit, according to a report by Reuters.

The deal, valued at about £1.6bn (US$2.1bn), could be announced in the next two weeks, the report adds, although timings could change.

It does not include production and distribution arm ITV Studios (ITVS), which is acquiring The Great British Bake Off producer Love Productions from Sky as part of the deal.

The agreement does cover ITV’s Media & Entertainment (M&E) unit, which includes ITV channels and streaming platform ITVX, home to series such as Love Island and recent drama Believe Me.

According to sources cited by Reuters, who were speaking on condition of anonymity, the deal is now being finalised by lawyers.

ITV shares rose 2.9% on Thursday following the Reuters report, giving the group, which comprises its broadcast and streaming unit and ITVS, a market ‌value of £3.1bn.

Reuters reported last month that the transaction would include a payout dependent on the ITV unit’s performance of about £200m.

Representatives for ITV and Sky declined to comment. Comcast did not respond to a request for comment from Reuters.

Talks between the pair over the sale of ITV’s M&E business to Sky were first confirmed last November. A deal has taken so long to come to fruition partly because of the complexity of separating ITVS from the wider group.

Sky is seeking a free-to-air foothold in the UK via ITV’s linear channels, in addition to ad-supported streamer ITVX, as it seeks scale in the face of competition from Netflix, Disney+ and Amazon-owned Prime Video.