Reuters: LONDON, July 6 - British broadcaster ITV (ITV.L) said on Monday it had agreed to sell its media and entertainment division to Comcast's (CMCSA.O) Sky for £1.6 billion ($2.13 billion).

ITV will ‌receive £1.2 billion in cash, an earn out of up to £200 million dependent on its advertising performance in the 2027 financial year and also "The Great British Bake Off" maker Love Productions, which will join the remaining ITV Studios business, the ⁠companies said.

Sky CEO Dana Strong said it was a "defining moment" for British media.

Combining Britain's biggest free-to-air commercial broadcaster and the pay-TV company Sky would have been unthinkable just a few years ago, but the rise of YouTube and streamers such as Netflix, Amazon and Disney, has left long-established broadcasters scrambling for scale.

"Bringing Sky and ITV Media & 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," Strong said.

"ITV will remain a public service broadcaster at the ⁠heart of British life, and we’re excited about the future we can build together."

The deal will leave ITV as a standalone production business, ⁠making shows for the combined ITV-Sky as well as other broadcasters and streamers globally.

The newly combined ITV M&E and ⁠Sky has committed to spend a minimum of £2.1 billion over 2028-2032.

($1 = £0.7497)