In a bid to become Britain's largest commercial broadcaster, Comcast's Sky pay-TV business on Monday unveiled a $2.1 billion deal to buy ITV Media and Entertainment.

ITV is a television powerhouse in Britain, with "Love Island," "Midsomer Murders," and the hugely popular FIFA World Cup. It operates a robust TV production studio and free-to-air channels that attract nearly 32% of the nation's ad-supported viewing.

ITV also has built a popular streaming service, which would round out Sky's portfolio of subscription services that include satellite TV, phone and broadband internet.

Both companies have prominent news channels, so the proposed combination is expected to draw intense scrutiny from British regulators who have previously expressed concerns about news diversity amid a wave of media consolidations.

The deal comes as traditional TV providers increasingly battle tech companies Netflix, Amazon and Google's YouTube for consumers. Gone are the days when British audiences largely tuned into the BBC or ITV, which launched 70 years ago as Britain's first commercial competitor to the dominant state-supported programmer.

ITV reaches nearly 40 million people every week and boasts 16.5 million monthly digital users. Combined with Sky, the business would command about 20% of in-home viewing in Britain, second to the BBC and ahead of YouTube.

The proposed union would create a British advertising juggernaut with an estimated two-thirds of the TV ad market.

"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," Dana Strong, chief executive of Comcast's Sky Group, said in a statement.

"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 Studios, one of the world's largest TV producers, is not included in the deal. It would remain a separate entity although, as part of the deal, Sky made a $2.8 billion agreement to buy programming from ITV Studios to support "British programming, production and creative jobs across the UK," according to the company.

The partnership comes as U.S.-based producers increasingly set up projects in Britain to take advantage of generous tax rebates there.

Sky's proposed acquisition of the ITV linear and streaming platforms comes a week after Comcast announced that, after 15 years of stewardship, it would spin off NBCUniversal to become a separate publicly traded company next year. Sky would be part of NBCUniversal after that transaction is complete.

In a statement, Sky and ITV suggested the proposed combination was a response to business headwinds. The combined entity would provide "diversity of revenue streams," with advertising and subscription fees, "providing a resilient and durable business model which will underpin its long-term success," the companies said.

The deal structure is complex. Comcast agreed to pay $1.6 billion in cash for the ITV Media and Entertainment division, and $267 million for the Love Productions studio. The unscripted "Love Island," is one of the biggest hits for Peacock, the Comcast-owned streaming service.

ITV also could collect an additional $267 million should it deliver on its advertising commitments.

The companies agreed to maintain ITV's linear channels and the ITVX streaming platform as free services that met the existing public service broadcasting commitments.

"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,"

Carolyn McCall, ITV chief executive, said in a statement. "This transaction builds on that momentum to deliver clear, tangible value for shareholders."

Comcast shares, which have been depressed for months, traded down to around $23.65 in mid-day trading.

Rupert Murdoch launched Sky in 1989, and Comcast acquired the satellite TV pioneer seven years ago when Murdoch divested much of his entertainment empire, including the LA-based Fox entertainment properties to the Walt Disney Co. Disney initially wanted to buy Sky but Comcast jumped into the fray, driving up the price for the Fox stable.

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