Sky nears deal for ITV media and entertainment unit
Comcast-owned Sky is nearing a 1.6 billion pound deal to buy ITV's media unit. The transaction includes a performance payout and a production asset swap.
COMCAST CORP-CLASS A subsidiary Sky is nearing a £1.6B ($2.18B) deal to acquire the Media and Entertainment unit of ITV PLC. The transaction includes a performance-based payout to manage valuation risks in the volatile United Kingdom broadcast market. This consolidation aims to create a top-three domestic streaming power to challenge global leaders for viewer share and advertising revenue.
### Scaling to Compete with Global Streamers The tie-up seeks to position the combined entity against NETFLIX INC, YouTube, AMAZON.COM INC, and DISNEY. Under the current terms, approximately £200M ($270.34M) of the total compensation is structured as an "earn-out" contingent on future business performance, people familiar with the matter said. This structure addresses declining advertising revenue across traditional British channels.
