ITV has agreed a £1.6bn deal with Sky, the owner of Sky News, for its media and entertainment arm following months of talks.

The agreement, subject to shareholder and regulatory approval, will create the UK's largest commercial broadcaster.

The proposed combination was first revealed last November.

It aims to create a UK-focused streaming giant amid the challenge posed by larger, established US platforms such as Netflix and Amazon Prime Video. The integrated streaming platform will have over 16 million viewers every month, said Sky's chief executive Dana Strong.

The deal includes the ITVX platform and ITV's free-to-air channels, but not ITV's studio operations.