UK Culture Secretary refers Sky-ITV deal to Ofcom and CMA

UK Culture Secretary Lisa Nandy has formally intervened in Sky's proposed £1.6 billion ($2.2 billion) takeover of ITV's television and streaming business, issuing a Public Interest Intervention Notice (PIIN) that refers the deal to Ofcom and the Competition and Markets Authority (CMA).

Nandy said she was “minded to intervene” last month and has now told both regulators to report back by January 27. Following their reports, she will decide whether to refer the deal for a more detailed investigation by the CMA. She will report back to parliament early next year.

Public interest concerns

The government's concerns centre on three areas:

• “the need for free expression of opinion in news media”
• “the need for a sufficient plurality of views in news media in each market”
• “the need for the availability throughout the United Kingdom of a wide range of broadcasting, on-demand programmes or both”

Nandy also revealed she will officially bring forward legislation to update the third consideration to include streaming, a step she previously said was under consideration.

The deal

ITV agreed in July to sell its media and entertainment business to Sky for £1.6 billion. The transaction covers ITV's terrestrial television channels and its streaming service, ITVX. Its production arm, ITV Studios, is not part of the sale and would continue operating as a separate company.

Sky is owned by Comcast but will soon be spun out under the NBCUniversal umbrella. Sky chief executive Dana Strong had described the proposed combination as “a defining moment for British media”. ITV chief executive Carolyn McCall had pitched it as the creation of a “U.K. champion” with the scale and resources to compete more effectively with global streaming platforms.

Sky said it looked forward to engaging constructively with the review. The company maintained that bringing Sky and ITV Media & Entertainment together would create a stronger British media business, better equipped to compete with global streamers, support British content and deliver more for viewers. It also argued that the transaction was in the public interest, pointing to commitments already made to protect ITV's identity, its public service broadcasting obligations and the distinct editorial voices of Sky News and ITV News.

Why it matters

The intervention does not itself block the takeover but opens the door to formal scrutiny. Ofcom will examine the public interest implications of the proposed merger, while the CMA will assess its impact on competition. The outcome will determine how much further the £1.6 billion transaction can proceed.

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Sources

• deadline.com: Sky-ITV: Lisa Nandy Says Ofcom & CMA Can Probe Competition Concerns
• indiantelevision.com: UK orders formal probe into Sky’s $2.1 billion ITV takeover - Indian Television Dot Com

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.