Sky has announced a long-awaited £1.6bn deal to buy ITV’s broadcasting and streaming arm to create the UK’s biggest commercial broadcaster.

Sky, which is owned by the US telecoms company Comcast, will pay £1.2bn in cash initially for ITV’s media and entertainment business, which includes its free-to-air TV channels in the UK and ITVX streaming platform. It has agreed to pay a further potential £200m in the second half of 2028, depending on 2027 advertising revenues.