Sky, the Comcast-owned U.K. pay-TV operator, has agreed on terms to buy British broadcaster ITV’s media and entertainment division, which is its network arm. Reuters reported the development on Thursday, citing two people familiar with the negotiations.
As part of the £1.6 billion ($2.1 billion) deal, ITV Studios – the standalone production unit – would acquire “The Great British Bake Off” producer Love Productions. The transaction could be valued between £80 million and £120 million based on comparable deals, and an earn-out, the sources said. ITV Studios is not part of the Sky acquisition.
The deal had shifted in a positive direction in the past week, Reuters said, and was now being finalized by lawyers, according to the sources, speaking on condition of anonymity.
Representatives for Sky, ITV and Comcast did not immediately respond to Variety‘s request for comment.
Following the Reuters report, ITV shares rose 2.9% on Thursday, giving the group, which comprises its broadcast and streaming unit and ITV Studios production company, a market value of £3.1 billion ($4.08 billion).
