Comcast's Sky Finalizes Terms to Acquire ITV Broadcast and Streaming Unit
Details of the Sky-ITV Acquisition Deal
By Paul Sandle and Amy-Jo Crowley
Overview of the Agreement
LONDON, June 24 (Reuters) - 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.
Financial Terms and Valuation
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.
Breakdown of Transaction Value
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.
Reuters reported last month that the transaction would include a payout dependent on the ITV unit's performance of about £200 million.
Timeline and Potential Delays
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.
Reactions and Background
Official Responses
Spokespeople for ITV and Sky declined to comment. Comcast did not immediately respond to a request for comment.
History of the Negotiations
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.
Separation of ITV Business Units
It has involved the complex task of separating ITV's channels and streaming platform ITVX, which comprise the unit, from its production business ITV Studios, which will be a standalone company following completion.
(Reporting by Paul Sandle and Amy-Jo Crowley in London; Editing by Matthew Lewis)