Sky has announced a long awaited £1.6bn deal to buy ITV’s broadcasting and streaming arm to create the UK’s biggest commercial broadcaster.

Sky, which is owned by the US telecoms company Comcast, will pay £1.2bn in cash initially for ITV’s media and entertainment business, which include its free-to-air TV channels in the UK and ITVX streaming platform. It has agreed to pay a further up to £200m in the second half of 2028, depending on 2027 advertising revenues.

As part of the deal, Comcast will sell its Love Productions business, which makes The Great British Bake Off, to ITV for £200m. The pair had been in negotiations for months to hammer out the complicated deal.

The transaction does not include the programme-making arm ITV Studios, one of the world’s biggest production companies, which has made shows including Love Island, I’m a Celebrity and the hit drama Mr Bates vs the Post Office.

Sky has committed to spending at least £2.1bn between 2028 and 2032 on the business as part of a long-term strategic partnership.

Andrew Cosslett, ITV’s chair, said: “For over seven decades, ITV has played an important and cherished role in the public life of the nation.

“At a time of rapid change in the industry, it is right that we now secure ITV’s crucial role as a public service broadcaster and this transaction achieves this with ITV’s media and entertainment division combining with Sky to create a UK champion with the scale and resources to better compete with global streaming platforms.”

More details to follow …