Nandy 'minded to intervene' in Sky's £1.6bn takeover of ITV entertainment arm

Culture Secretary Lisa Nandy has expressed her willingness to intervene in Sky's proposed £1.6bn acquisition of ITV's entertainment division. Nandy stated there are reasonable grounds to believe the deal could impact free expression in the media and the variety of Britain's news landscape. Sky expressed readiness to carefully consider Nandy's letter and engage constructively in the review of the deal.

They remain confident that the merger will create a stronger British media sector. ITV welcomed the letter, with the deal expected to help it compete with global streaming platforms and benefit viewers, advertisers, and the UK's creative industries. The deal, announced in July, includes ITV's broadcasting business but excludes its production arm, ITV Studios.

Nandy has informed Sky and ITV that she is considering issuing a public interest intervention notice (PIIN) to the Competition and Markets Authority (CMA) to investigate the tie-up. She highlighted concerns such as the need for free expression of opinion in news media, a range of views in news media across the UK, and a range of people controlling the media.

Nandy acknowledged the importance of ITV News and Sky News as prominent sources of television news in the UK, comprising 26% of viewership. However, she fears the merger could weaken the range of views available to viewers, potentially concentrating power in the hands of the BBC and Sky/ITV, with the North of England and other regions particularly vulnerable.

Both Sky and ITV have been given until October 20 to respond to Nandy's concerns. Sky pledged to protect ITV's identity and public service broadcasting obligations, while ITV expressed willingness to cooperate fully in the regulatory review process. Nandy's intervention would require the introduction of new legislation to extend public interest considerations to on-demand programmes, as current laws do not cover this aspect.