Sky’s proposed $2.1 billion takeover of ITV’s media & entertainment unit has hit a roadblock as U.K. Secretary of Culture, Media and Sport Lisa Nandy says she is issuing a Public Interest Intervention Notice (PIIN).
The PIIN comes as Nandy says she has “public interest considerations” that “warrant further investigation.” These include the “need for free expression of opinion in news media,” for a “sufficient plurality of views in news media in each market for news media in the United Kingdom or a part of the United Kingdom” and “a sufficient plurality of persons with control of the media enterprises” serving that audience.
The notice means that the U.K.’s Competition and Markets Authority and media regulator Ofcom will both investigate the proposed acquisition, with the former scrutinizing its impact on competition and the latter focusing on its impact on the public interest. The CMA and Ofcom must report back to Nandy by Jan. 27, 2027.
She will then decide whether to refer the Sky-ITV deal for a more detailed investigation by the CMA. The Department of Culture, Media and Sport will update Parliament after both reports from the regulators have been received and considered.
In addition to the above considerations, Nandy has also decided to intervene on the “need for the availability throughout the United Kingdom of a wide range of (i) broadcasting; and (ii) on-demand programmes; which (in each case, taken as a whole), is of high quality and calculated to appeal to a wide variety of tastes and interests.”
“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,” she said. “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.”
Nandy also said she would not issue a Foreign State Intervention Notice at this time based on the evidence available to her.
“If new or additional information comes to light which suggests that a foreign state newspaper merger situation may be created as a result of the arrangements currently in progress being carried into effect, then I will be obliged to refer the merger to the Competition and Markets Authority under section 70A of the Act,” she said.
An ITV spokesperson told TheWrap that it welcomes Nandy’s decision to issue a PIIN and look forwards to “cooperating fully” with the review.
“This is a major milestone in the regulatory review process towards creating a UK champion with the scale and resources to better compete with global streaming platforms benefitting viewers, advertisers, the UK creative industries and the delivery of Public Service Broadcasting,” the ITV spokesperson said. “We look forward to cooperating fully with the CMA, DCMS and Ofcom in the review and will respond formally to the PIIN.”
A Sky spokesperson also told TheWrap that it looks forward to “engaging constructively” in the review.
“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,” the Sky spokesperson added. 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.”
The Sky-ITV deal covers ITV’s linear channels and the ITVX streaming platform. Production arm ITV Studios would continue to operate separately.
Under the terms of the deal, the companies have said that Sky News and ITV News will stay editorially distinct. Sky will also acquire “The Great British Bake Off” producer Love Productions as part of the deal. It also includes $2.8 billion in content spend with ITV Studios over the next five years.
Approximately $267 million in annual cost savings are expected to be generated on a run-rate basis by the end of the third year after the deal’s closing. The majority will be delivered through efficiencies in marketing, technology platforms and non-U.K. content.
ITV, which reaches around 40 million people each week and serves over 16.5 million monthly digital users, would account for around 20% of all in-home viewing in the U.K. when combined with Sky — second to the BBC and ahead of YouTube.
