Nandy orders public-interest review of Sky's £1.6 billion ITV deal

The intervention notice starts a review and is not a decision to block the deal. The Competition and Markets Authority will examine competition and jurisdictional matters, while Ofcom will assess media plurality, freedom of expression and the distribution of editorial control. After both report to Nandy, she may refer the transaction to the CMA for a more detailed investigation.

What Sky would buy

Sky agreed in July to buy ITV's media and entertainment operations for up to £1.6 billion, including ITV's free-to-air television channels and the ITVX streaming service. ITV Studios, the production arm behind I'm a Celebrity... Get Me Out of Here! and Mr Bates vs The Post Office, remains outside the sale. Sky is a subsidiary of US telecoms group Comcast. The companies have presented the combination as a larger British media business better able to compete with global streaming platforms including Netflix and Disney+. Sky said it would protect ITV's identity, public-service broadcasting obligations and the separate editorial voices of Sky News and ITV News. ITV called the intervention a 'major milestone' in the regulatory process and said it would cooperate fully with the CMA, Department for Digital, Culture, Media and Sport and Ofcom.

Nandy's concerns

Nandy had signalled the move on 15 October, when she said she was minded to intervene on public interest grounds. She said she had considered representations from both companies before issuing the notice under the Enterprise Act 2002. The government's concerns centre on whether the acquisition could reduce the range of independent voices in British news, concentrate control of major media businesses and affect the availability of diverse, high-quality television and streaming content.

Nandy also plans legislation to extend the public-interest assessment to on-demand programming, bringing streaming services into a framework that currently focuses on broadcasting. She said the existing consideration should be modified to apply to on-demand programmes 'in line with modern viewing habits and my specific concerns regarding this merger.'

Costs and next steps

The companies expect about £200 million in annual cost savings by the end of the third year after completion, mainly from marketing, technology and content operations. The agreement also includes a five-year, £2.1 billion programming supply arrangement with ITV Studios, giving the production arm a revenue stream after the channels leave the group. The transaction remains subject to regulatory approval and other customary conditions, Sky said when the deal was announced.

The CMA and Ofcom must report to Nandy by 27 January 2027. She will then decide whether to refer the deal for a more detailed CMA investigation. Parliament will be updated once the regulators' findings have been considered, the government said. Regulators must assess whether the potential advantages of combining the businesses outweigh risks from concentrating ownership and influence over British media.