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

ITV is selling its media and entertainment divisions to Sky for £1.6bn in a deal that the companies say will create a strong rival to 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 takeovers in British media history, with American-owned Comcast – which owns Sky – having started takeover talks in November last year.

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

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