Culture Secretary Lisa Nandy has formally intervened in Sky's £1.6bn acquisition of ITV's broadcasting arm, citing concerns about media plurality and the variety of British news coverage.
On Wednesday, Nandy announced she had issued a Public Interest Intervention Notice (PIIN), directing the Competition and Markets Authority (CMA) and broadcasting regulator Ofcom to examine the proposed transaction.
Regulators to report by January
Both regulators have until 27 January to submit their assessments, after which Nandy will decide whether to mandate a more comprehensive inquiry.
"Having fully considered their representations, I have decided to issue a Public Interest Intervention Notice," Nandy said.
The move follows her caution last month that the combination could pose a risk to freedom of expression and the range of perspectives in news media.
Plans to expand media merger rules
Nandy also revealed intentions to broaden current media merger rules to encompass streaming platforms, placing on-demand services under identical scrutiny as conventional broadcasting.
The proposed takeover would hand Sky ownership of ITV's Media and Entertainment arm, encompassing its television channels and streaming service ITVX. ITV Studios, the production unit responsible for programmes such as Love Island, has been carved out of the transaction.
Deal aims to rival global streamers
The firms have argued that the combination would forge a more robust British broadcasting entity equipped to rival international streaming behemoths including Netflix and Disney+. The companies anticipate approximately £200m in yearly cost reductions, primarily by merging marketing and technology functions.
Sky has committed to safeguarding ITV's free-to-air services and public-service broadcasting responsibilities, while maintaining editorial independence between ITV News and Sky News.
The CMA will evaluate competition and jurisdictional matters, while Ofcom will scrutinise the public interest ramifications.
A Sky spokesperson said: "Bringing Sky and ITV Media & Entertainment together will create a stronger British media business, better equipped to compete with global streamers, support British content and deliver more for viewers.
"We believe the transaction is in the public interest, with clear commitments already made to protect ITV's identity, public service broadcasting obligations and the distinct editorial voices of Sky News and ITV News."
