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

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

Culture Secretary Lisa Nandy has signaled that she is “minded to intervene” in the proposed £1.6 billion acquisition of ITV’s media and entertainment division by Sky. Nandy expressed concerns that the deal could potentially impact the diversity of voices in the UK’s news media and affect free expression. Her comments came as part of a formal letter sent to both companies, indicating the possibility of escalating the matter for further scrutiny.

In response, Sky stated it would “carefully consider” the letter and engage constructively with any ensuing review. The company remains confident that the merger of Sky and ITV’s media assets will bolster the British media landscape. ITV also reacted positively to Nandy’s letter, emphasizing that the deal would strengthen its ability to compete with global streaming giants, ultimately benefiting viewers, advertisers, and the creative industries across the UK.

Earlier announcements revealed that Sky planned to acquire ITV’s broadcasting operations, including its free-to-air channels and the ITV X streaming service, but the deal excludes ITV Studios, the production company behind hit shows like *Love Island* and *I’m a Celebrity… Get Me Out of Here*. Sky anticipates that the acquisition will increase its viewership substantially and help both firms better challenge international streaming platforms such as Netflix.

Nandy’s letter to Sky and ITV revealed she is considering issuing a public interest intervention notice (PIIN), which would prompt investigations by the Competition and Markets Authority (CMA) and regulator Ofcom. The review would focus on several public interest concerns: ensuring freedom of expression in news media, sustaining a diversity of views and ownership within UK media, and maintaining a broad range of programming accessible to audiences across the country. The letter highlighted the significant market share held by Sky News and ITV News—together accounting for 26% of linear TV news viewers—while noting that alternatives such as the BBC and Channel 4 remain available.

However, Nandy warned that the merger could reduce the plurality of news perspectives over time. Currently, the BBC along with Sky and ITV control 86% of the linear TV news market, a concentration that may disproportionately affect regions outside the South of England, including the North of England and other UK nations, as well as audiences from lower socio-economic groups who primarily rely on broadcast television for news. Sky and ITV have until 20 October to address these concerns. Sky reiterated its commitment to preserving ITV’s identity and editorial independence, ensuring both ITV News and Sky News continue as separate voices. Meanwhile, ITV emphasized it welcomed the intervention notice as a routine step and looks forward to cooperating throughout the regulatory process with the aim of boosting competition against global streaming services.

Importantly, Nandy’s potential intervention would be based on a recently introduced public interest consideration, which would require new legislation because existing rules do not cover the impact of mergers on streaming or on-demand content. She explained, “If I decide to intervene on the basis of this new public interest consideration, I will bring forward legislation… to extend the application of the public interest consideration relating to the availability of a wide range of broadcasting to on-demand programmes.” This would mark a significant development in how mergers within the evolving media landscape are assessed and regulated in the UK

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