Government intervenes in Sky’s £1.6bn ITV takeover

Culture Secretary Lisa Nandy has formally intervened in Sky’s £1.6bn bid to acquire ITV’s broadcasting division, expressing concerns over the impact on media competition and the diversity of British news. She issued a Public Interest Intervention Notice (PIIN) on Wednesday, prompting the Competition and Markets Authority (CMA) and media regulator Ofcom to investigate the proposed deal.

Both bodies have until January 27th to submit their findings, after which Nandy will determine if a deeper probe is warranted. Nandy warned last month that the merger could jeopardize freedom of expression and the variety of news perspectives. The acquisition would see Sky take over ITV’s Media and Entertainment arm, encompassing its TV channels and streaming service ITVX, while ITV Studios, responsible for programs like Love Island, was excluded.

Sky and ITV argue that the merger would strengthen British broadcasting to compete with global streaming powerhouses like Netflix and Disney+, predicting annual savings of around £200m through combined marketing and technology operations. Sky has assured ITV that it will uphold the free-to-air services and public-service broadcasting duties, keeping ITV News and Sky News editorially independent.

The CMA will evaluate competition and jurisdictional concerns, while Ofcom will scrutinize the public interest ramifications.