Sky takeover of ITV: Culture Secretary ‘minded to intervene’

Culture Secretary Lisa Nandy has said she is “minded to intervene” in Sky’s proposed £1.6bn takeover of ITV’s media and entertainment division, a step that could lead to a formal government-backed review. The Sky takeover of ITV, agreed in July, would bring two of Britain’s best-known broadcasters under one owner. Nandy has not made a final decision, and both companies have until Tuesday 20 October to respond.

The deal would affect anyone who watches ITV’s free-to-air channels, the ITV X streaming service, ITV News or Sky. It does not include ITV Studios, the production arm behind Love Island and I’m a Celebrity… Get Me Out of Here.

Nandy’s ITV takeover decision: what she is weighing

According to the BBC, Nandy has told both companies she is considering issuing a public interest intervention notice (PIIN) to the Competition and Markets Authority (CMA) and the regulator Ofcom. That would trigger assessments by both bodies of the tie-up. Her letter listed the public interest considerations she wants to address: free expression of opinion in news media, a range of views in news media, a range of people controlling the media, and a wide range of programmes across the UK.

She is also looking at a new public interest consideration covering on-demand programmes. Current law does not cover the effect of a merger on streaming, so this would need new legislation. In her statement to MPs she said: “If I decide to intervene on the basis of this new public interest consideration, I will bring forward legislation which amends section 58 of the Act to extend the application of the public interest consideration relating to the availability of a wide range of broadcasting to on-demand programmes.”

Why news plurality is central to the £1.6bn ITV acquisition

The letter, as reported by the BBC, recognises Sky News and ITV News as two of the most prominent sources of television news in the UK. Together they have a 26% share of people watching news on linear TV. It adds that viewers would still have other sources, such as the BBC and Channel 4.

Nandy’s concern is about the longer term. The letter says the BBC and Sky/ITV together control 86% of the linear TV news market, and that the tie-up could over time narrow the range of views available.

The letter argued that the North of England, the nations outside England and people from lower socio-economic backgrounds could be hit hardest, because broadcast news is their main source. City AM reported that bosses have pledged to keep ITV News and Sky News separate until 2030.

What Sky and ITV have said

Sky said it would “carefully consider” the letter and “engage constructively” with the review. A spokesperson said: “We remain confident that bringing Sky and ITV’s media and entertainment business together will create a stronger British media.” Sky also said it had made commitments to protect ITV’s identity, its free-to-air services and its public service broadcasting obligations, and to keep the two news operations as distinct editorial voices.

ITV welcomed the letter, saying the deal would help it “compete with global streaming platforms, benefiting viewers, advertisers and the UK creative industries”. City AM reported that ITV chief executive Carolyn McCall has stressed that British platforms are competing with the likes of YouTube and Netflix. The same report said ITV’s share price has fallen by more than 37% over five years.

What happens next

The first date is Tuesday 20 October, when Sky and ITV must respond to Nandy’s concerns. According to Deadline, her next step would potentially be to issue the intervention notice. Ofcom would then assess and report on the public interest considerations, while the CMA would assess whether a relevant merger situation has been created that would damage competition. Nandy could then refer the deal to the CMA for a more detailed investigation. Deadline reported that she will update Parliament shortly.

The sources do not give a date for any final ruling. If Nandy does intervene on the new on-demand ground, she says legislation would have to come first.