Sky to Buy ITV for £1.6 Billion, Creating UK Broadcasting Champion.

Sky CEO Dana Strong said the deal, announced on Monday and confirming a recent Reuters report, was a "defining moment" and one of the biggest in the history of British broadcasting. It will now face scrutiny from regulators and lawmakers.

The deal includes the terrestrial TV channels and streaming service of ITV, Britain’s largest commercial broadcaster. Sky, the UK-based TV, internet and mobile phone provider owned by Comcast, has agreed to buy ITV’s media and entertainment arm for up to £1.6 billion, or $2.1 billion.

The agreement follows months of talks aimed at creating a major competitor to the global streaming giants. The combined Sky-ITV entity will become part of NBCUniversal following the completion of its split from Comcast, ITV said.

The merger of ITV’s public service channels and Sky’s leading pay-TV business, founded by Rupert Murdoch in 1989, would account for more than 70% of the UK television advertising market, analysts have said. The new combined company will reach more than 20 million households.

The combination of Britain’s biggest free-to-air commercial broadcaster and the pay-TV company Sky would have been unthinkable just a few years ago, but the rise of You Tube and the streaming giants has left traditional companies exposed.

Dealmakers and companies in Britain will be watching the transaction closely to see whether a deal that would once have been blocked could be approved after the government in 2025 called on regulators to prioritise conditions for growth and investment.

Strong said the deal would deliver outstanding British programming in a rapidly changing world. ITV will remain a public service broadcaster at the heart of British life, she said, adding that the companies are excited about the future they can build together.