Culture Secretary Considers Intervention in Sky-ITV Deal

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. The deal, announced in July, would see Sky acquire ITV's free-to-air TV channels and the ITV X streaming service, but not the production arm ITV Studios, which makes shows like Love Island and I'm a Celebrity... Get Me Out of Here.

Regulatory concerns raised

Nandy has expressed concerns that the merger could harm media plurality and free expression in Britain. In a letter outlining her considerations, she cited the need for a sufficient plurality of persons controlling media enterprises and a wide range of high-quality programming appealing to diverse tastes. She said there were reasonable grounds to believe the deal could affect the variety of the UK's news landscape.

Sky News and ITV News currently hold a joint 26% share of linear TV news viewing. Over time, the tie-up could undermine the range of views available to viewers, with the BBC and a combined Sky/ITV controlling 86% of the linear TV news market. Nandy warned that audiences in the North of England, other UK nations, and those from lower socio-economic backgrounds could be particularly hard hit by any reduction in plurality.

Responses and next steps

Sky and ITV have been given until 20 October to respond to the culture secretary's concerns. Sky stated it would carefully consider the letter and engage constructively, arguing that bringing the businesses together would create a stronger British media. The company has made commitments to protect ITV's identity, its free-to-air services, its public service broadcasting obligations, and to ensure ITV News and Sky News remain distinct editorial voices.

ITV welcomed the publication of the letter and said it looked forward to cooperating. The broadcaster said the deal would help it compete with global streaming platforms, benefiting viewers, advertisers, and the UK creative industries. Should Nandy decide to issue a public interest intervention notice following the responses, it would trigger formal investigations by regulators Ofcom and the Competition and Markets Authority.

Broader context and precedent

Nandy's potential intervention would be made under a new public interest consideration, as current laws do not cover the effect of a merger on streaming or on-demand programmes. She said that if she decides to intervene, she will bring forward legislation to extend the public interest consideration to on-demand programmes. Sky, owned by US giant Comcast, describes the purchase as a chance to create a UK-focused national streaming champion.

This move follows Nandy's recent involvement in the Paramount-Warner Bros Discovery deal, where she threatened intervention due to UK ownership of Channel 5 by Paramount. She eventually waved that deal through after securing significant concessions. Under those UK guarantees, Paramount’s Channel 5 will continue to operate as a public service broadcaster until the end of 2034, and Channel 5 News will retain its editorial independence, remaining separate from CBS News and CNN International.

With the TV industry under pressure from global streamers and digital platforms, few in the industry believe the Sky-ITV deal will be blocked outright. There have already been huge mergers across the media world as big players seek greater scale to compete globally. Sky and ITV have until 20 October to respond to the culture secretary's concerns.