The deal that has ended the fierce competition between once arch rivals has cost 160 million pounds.

Reports claim that Pay-TV firm BSkyB would shell out as high as 160 million pounds in order to buy Virgin Media's basic channels.

In the bid to expand its portfolio of basic pay TV channels, the satellite group BSkyB would pay up to 160 million pounds in cash.

Currently the basic pay TV channels include Living, Bravo and Virgin1. Under the deal the Company would also assume the responsibility for selling advertising around the channels from the year 2011.

As per the reports, Virgin Media that pursues a strategy of providing access to content through its superfast technology instead of owning it, has also given its consent for the deal. With the deal the access to Sky's basic channels, including the ones that have just been sold would be allowed.

Under the deal, Virgin Media would also pay an incremental wholesale fee to show any of the Sky's basic, sports and movie channels in high definition.

BSkyB Chief Executive Jeremy Darroch said in a joint statement that, "VMtv is an attractive investment opportunity which complements our existing content business and delivers strategic and financial benefits".

Reports suggest that BSkyB would pay 105 million pounds in cash on completion of the deal. The remainder would be paid after the regulatory processes have been dealt with.