Culture secretary Lisa Nandy has formally intervened in Sky’s £1.6bn takeover of ITV’s broadcasting business, instructing regulators to look into the proposed deal after raising concerns over its impact on media competition and the diversity of British news.
Nandy confirmed on Wednesday that she had issued a Public Interest Intervention Notice (PIIN), directing the Competition and Markets Authority (CMA) and media regulator Ofcom to examine the proposed acquisition. Both watchdogs have until 27 January to report their findings, after which Nandy will decide whether to order a more detailed investigation.
The intervention follows a warning from Nandy last month that the merger could threaten freedom of expression and the diversity of views in news media. She also announced plans to extend existing media merger legislation to cover streaming services, bringing on-demand platforms under the same considerations as traditional broadcasting.
The deal would see Sky take control of ITV's Media and Entertainment division, including its TV channels and streaming platform ITVX. ITV Studios, the production business behind shows such as Love Island, has been excluded from the transaction.
The companies have said the merger would create a stronger British broadcasting business capable of competing with global streaming giants such as Netflix and Disney+. They expect about £200m in annual cost savings, largely through combining marketing and technology operations. Sky has pledged to protect ITV's free-to-air services and public-service broadcasting obligations, while keeping ITV News and Sky News editorially separate.
The CMA will assess competition and jurisdictional issues, while Ofcom will examine the public interest implications.
Analysis
Why This Matters
- The intervention signals government concern about media concentration and the plurality of news sources in the UK, affecting how millions access news and entertainment.
- The outcome could set a precedent for how streaming and digital platforms are treated under media merger rules, with Nandy proposing to extend legislation to cover streaming services.
- If cleared, the deal would create a merged entity better positioned to compete with global rivals; if blocked, it could reshape strategic options for both broadcasters.
Background
The proposed acquisition comes as traditional broadcasters face increasing competition from streaming giants such as Netflix and Disney+. Sky, owned by Comcast, is one of the UK's largest pay-TV operators, while ITV is the country's biggest commercial free-to-air broadcaster. Under the Enterprise Act 2002, the culture secretary can intervene in media mergers on public interest grounds, including the need for accurate news and a sufficient plurality of views.
Key Perspectives
Lisa Nandy (Culture Secretary): warned the merger could threaten freedom of expression and the diversity of views in news media, and said she had decided to issue a Public Interest Intervention Notice after fully considering representations.
Sky and ITV: said the merger would create a stronger British broadcasting business capable of competing with global streaming giants; they expect about £200m in annual cost savings, and Sky has pledged to protect ITV's free-to-air services and keep ITV News and Sky News editorially separate.
What to Watch
- The CMA and Ofcom reports, due by 27 January 2027, will determine whether Nandy orders a more detailed phase-two investigation.
- The government's proposal to extend media merger rules to streaming services, which could affect future deals involving on-demand platforms.
- How the competition and public interest findings balance against the companies' arguments about the need to scale up against global rivals.
Checked
12 claims in this story checked against 1 source: 12 supported.
Show each claim
- SupportedThe government has intervened in Sky’s £1.6bn takeover of ITV’s broadcasting business.City AM: “Government intervenes in Sky’s £1.6bn ITV takeover. Culture secretary Lisa Nandy has formally intervened in Sky’s £1.6bn takeover of ITV’s broadcasting business”
- SupportedNandy issued a Public Interest Intervention Notice (PIIN).City AM: “Nandy confirmed on Wednesday that she had issued a Public Interest Intervention Notice (PIIN)”
- SupportedThe CMA and Ofcom have until 27 January to report their findings.City AM: “Both watchdogs have until 27 January to report their findings”
- SupportedNandy intervened after raising concerns about media competition and the diversity of British news.City AM: “formally intervened in Sky’s £1.6bn takeover of ITV’s broadcasting business after raising concerns over its impact on media competition and the diversity of British news.”
- SupportedNandy confirmed on Wednesday that she had issued the notice and instructed the CMA and Ofcom to examine the proposed deal.City AM: “Nandy confirmed on Wednesday that she had issued a Public Interest Intervention Notice (PIIN), instructing the Competition and Markets Authority (CMA) and media regulator Ofcom to look into the proposed deal.”
- SupportedAfter the watchdogs report, Nandy will decide whether to order a more detailed investigation.City AM: “Both watchdogs have until 27 January to report their findings, after which Nandy will decide whether to order a more detailed investigation.”
- SupportedNandy warned last month that the merger could threaten freedom of expression and the diversity of views in news media.City AM: “It follows her warning last month that the merger could threaten freedom of expression and the diversity of views in news media.”
- SupportedNandy confirmed plans to extend media merger legislation to cover streaming services.City AM: “Nandy also confirmed plans to extend existing media merger legislation to cover streaming services, bringing on-demand platforms under the same considerations as traditional broadcasting.”
- SupportedThe deal would give Sky control of ITV’s Media and Entertainment division, including its TV channels and ITVX.City AM: “The proposed acquisition would see Sky take control of ITV’s Media and Entertainment division, including its TV channels and streaming platform ITVX.”
- SupportedITV Studios, the production business behind Love Island, is excluded from the deal.City AM: “ITV Studios, the production business behind shows like Love Island, has been excluded from the deal.”
- SupportedThe companies expect about £200m in annual cost savings, largely from combining marketing and technology operations.City AM: “They expect around £200m in annual cost savings, largely through combining marketing and tech operations.”
- SupportedSky has pledged to protect ITV’s free-to-air services and public-service broadcasting obligations, and keep ITV News and Sky News editorially separate.City AM: “Sky has pledged to protect ITV’s free-to-air services and public-service broadcasting obligations, while keeping ITV News and Sky News editorially separate.”