The broadcaster has agreed terms to acquire ITV Media and Entertainment from ITV for up to £1.6 billion, as it seeks to become a streaming giant.
Dana Strong, Sky Group CEO, said: "This is a defining moment for British media and an opportunity to build a stronger future for two of the UK's most loved and trusted brands.
"We have huge respect for the transformation the ITV team has delivered, particularly its successful move into streaming through ITVX, which has brought fantastic British content to millions of viewers across the UK.
"Bringing Sky and ITV Media and Entertainment together combines the very best of free-to-air television, pay TV and streaming, ensuring viewers across the UK continue to enjoy outstanding British programming in a rapidly changing world.
"ITV will remain a public service broadcaster at the heart of British life, and we’re excited about the future we can build together."
Sky has confirmed that the deal comprises £1.2 billion in cash, Love Productions, and up to £0.2 billion in performance-related earn-out.
Carolyn McCall, the chief executive officer of ITV, is thrilled with the terms of the agreement.
McCall said: "ITV has successfully evolved in a rapidly changing media landscape - launching, and scaling, ITVX and developing ITV Studios into a major force in the global content market. This transaction builds on that momentum to deliver clear, tangible value for shareholders.
"At the same time, through the commitments made by Sky, the combined ITV MandE / Sky business will continue to deliver everything about ITV that our viewers and advertisers love and value and our people are hugely proud of - making programmes that reflect and shape society, bringing people together for shared experiences and having the quality, diversity and plurality that are the hallmarks of our contribution to the UK’s creative industries."
McCall is convinced that Sky are the perfect partners to work with.
The ITV boss said: "I am also confident that Sky will be a strong and responsible custodian of ITV M and E, building on its heritage while investing in its future and safeguarding the qualities that make ITV so valued by viewers, advertisers and the UK's creative industries."
