Nov 7 (Reuters) - ITV said on Friday it was in

talks with pay-TV company Sky, owned by Comcast ( CMCSA ), over

a potential sale of the British broadcaster's media and

entertainment (M&E) unit for 1.6 billion pounds ($2.15 billion)

including debt.

ITV's M&E division, which includes its free-to-air channels

and its ITVX streaming platform, is dependent on advertising.

The broadcaster has also built up a Studios production

business, which makes shows for its own channels and other

broadcaster and streamers worldwide.

ITV's M&E unit made revenue of 955 million pounds ($1.28

billion) and adjusted earnings interest, tax and amortisation of

35 million pounds in the six months to end-June, the company

reported in July.

($1 = 0.7451 pounds)