Sky, the British media group owned by Comcast, said on Monday that it was buying the television arm of ITV in a deal that would vastly expand its audience and help Comcast compete with rival streaming platforms.
The 1.6 billion pound ($2.1 billion) takeover would combine two major media brands into a broadcaster that is expected to account for 20 percent of home viewing in Britain. The deal includes ITV’s free-to-air channels and its streaming platform.
Last week, Comcast announced it would spin off NBCUniversal and Sky into a separate company focused on media and entertainment, while Comcast would center on its cable and internet services. Earlier this year, Comcast moved its cable channels, including MS Now and CNBC, into a new company called Versant.
Dana Strong, the chief executive of Sky Group, called the merger “a defining moment for British media” in a statement. Comcast acquired Sky in 2018.
“ITV will remain a public service broadcaster at the heart of British life, and we’re excited about the future we can build together,” she said.
ITV, the oldest commercial network in Britain, has suffered as viewers and advertisers have shifted to YouTube and streaming giants like Netflix and Disney. Sky said that under the merger, ITV’s channels would remain free to air and ITV News and Sky News would remain distinct news outlets.
Sky is acquiring ITV for £1.2 billion in cash, with add-ons for advertising performance potentially bringing the transaction up to £1.6 billion. As part of the deal, Comcast is expected to sell its Love Productions business, which makes “The Great British Baking Show,” to ITV.
ITV Studios, the production arm, is not included in the acquisition by Sky and is to operate independently. Sky has agreed to spend at least £2.1 billion ($2.8 billion) over five years on content from ITV Studios, which the company said would help to support creative jobs and British-centric production.
The deal faces regulatory approval and is not likely to be completed until next year.
