(Reuters) -Paramount Skydance on Friday said it has agreed to sell its shares in the entities that control Chilean free-to-air TV channel Chilevision to Vytal Group.

The sale is part of Paramount Skydance's strategy to streamline its global portfolio and expand direct-to-consumer services in key Latin American markets.

The deal will be led by a holding company controlled by Argentine media executive and television producer Tomas Yankelevich, along with Jorge Carey, the current owner of CNN Chile, and Edgar Spielmann, Paramount Skydance said in a statement.

Until the deal is closed, Chilevision will continue operations under Paramount Skydance. It will be subject to review and approval by regulatory authorities in Chile.

The company on Monday said it will reduce its workforce by about 1,600 jobs as it divests Telefe in Argentina, which operates television stations in Buenos Aires and other markets, and Chilevision.