Culture Secretary Lisa Nandy has formally intervened in Sky's proposed £1.6 billion takeover of ITV's media and entertainment arm, citing public interest concerns. The move triggers a review by the Competition and Markets Authority (CMA) and regulator Ofcom, which will report back on the deal's impact on media plurality in the UK and free speech by January 27.
Public Interest Intervention Notice Issued
Ms Nandy announced her decision to issue a Public Interest Intervention Notice, paving the way for the regulators to investigate the takeover. Following their reports, she may decide to refer the deal to the CMA for a further in-depth investigation.
The Culture Secretary had already indicated last month that she was "minded to intervene" on public interest grounds. She also said she will bring forward new streaming legislation in view of her "specific concerns" over the tie-up.
Modern Viewing Habits Considered
Ms Nandy said: "The legislation already specifies a public interest consideration on the need for the availability, throughout the UK, of a wide range of broadcasting which is both of high quality and calculated to appeal to a wide variety of tastes and interests."
She added: "As I explained in my written statement dated 15 October, I believe that this consideration should be modified to apply to on-demand programmes as well as broadcasting in line with modern viewing habits and my specific concerns regarding this merger."
Deal Details and Scope
ITV struck a deal in July to sell its media and entertainment division to Sky, a move that would create a major competitor to global streaming giants. The sale includes ITV's terrestrial TV channels and streaming service ITVX, but does not include its production arm, ITV Studios, which makes shows including I'm A Celebrity and dramas such as Mr Bates Vs The Post Office.
