Comcast’s ‌Sky has agreed to buy the broadcast channels and streaming service of Britain’s ITV for £1.6 billion ($2.13 billion), creating a British champion with the scale to compete with global players like Netflix, Amazon and Disney.

Sky CEO Dana Strong said the ​deal, announced on Monday and confirming a recent Reuters story, was a “defining moment”, one of the biggest ​in the history of British broadcasting.

It will now face scrutiny from regulators ⁠and lawmakers.

The combination of 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 the streaming giants has left ​traditional companies exposed.

Combined company has 70% of TV Ad market

The merger of the public service channels of ITV and the leading pay-TV business of Sky, founded by Rupert Murdoch in 1989, would account for more than 70% of the UK ​television advertising market, analysts have said.

Many lawmakers have close connections with ITV locally, stemming from its ​foundation as a group of regional franchises more than 70 years ago.

Culture Minister Lisa Nandy showed she had the ‌appetite ⁠to shape media deals when she said last week that she could intervene in the US Paramount-Warner tie-up.

Strong said the deal would deliver “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,” she ​said.

ITV left as standalone production business

Shares in ITV ⁠traded up 1% to 83 pence in early deals on Monday.

The deal will leave ITV as a standalone production business, making shows for the combined ITV-Sky, ​such as Love Island and Coronation Street, as well as other broadcasters and ​streamers globally, ⁠such as the hugely popular Rivals it makes for Disney.

The merged ITV-Sky company has committed to spend a minimum of £2.1 billion over 2028-2032.

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.