By Adam Whittaker
Comcast's Sky has agreed to buy ITV's media and entertainment business for up to 1.6 billion pounds, equivalent to $2.14 billion, in a deal that will see ITV spin ITV Studios off into a separate London-listed business.
London-listed ITV said Monday that it will receive 1.2 billion pounds in cash upon completion of the deal before additional performance related add-ons.
ITV expects to return around 950 million pounds of the proceeds to shareholders. The deal is subject to regulatory approvals and is expected to complete in the second half of 2027.
Under the terms of the agreement, ITV Studios will be separated and listed in London. It will enter into a long-term content supply agreement with ITV's media and entertainment unit and Sky, valued at a minimum of 2.1 billion pounds from 2028 to 2032.
Write to Adam Whittaker at adam.whittaker@wsj.com