London: Sky, the Comcast-owned British pay TV group, has agreed on terms to buy ITV's broadcast and streaming unit, two people familiar with the matter said, with ITV acquiring "The Great British Bake Off" producer Love Productions as part of the deal.
The £1.6 billion deal had moved in a positive direction in the last week and was now being finalised by lawyers, the people said on Wednesday, speaking on condition of anonymity.
The total transaction value will include ITV Studios acquiring Sky's Love Productions, which also makes "The Piano" and could be valued between £80 million and £120 million based on comparable deals, and an earn-out, the people said.
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ITV shares rose 2.9% on Thursday following the Reuters report, giving the group, which comprises its broadcast and streaming unit and ITV Studios production company, a market value of £3.1 billion.
Reuters reported last month that the transaction would include a payout dependent on the ITV unit's performance of about £200 million.
A deal could be announced in the next two weeks, the people said, with one source cautioning that the timing could still slip due to final legal complications.
The tie-up aims to create a top-three UK streamer to compete with global giants Netflix, YouTube, Amazon Prime Video and Disney+.
Spokespeople for ITV and Sky declined to comment. Comcast did not respond to a request for comment.
Concluding the deal would end a saga that began last year, and became public in November when ITV said it was in talks to sell the unit, called Media & Entertainment, to Sky.
It has involved the complex task of separating ITV's channels and streaming platform ITVX from ITV Studios, which will be a standalone company following completion.
