UK Culture Secretary Considers Intervening in Sky's £1.6bn Purchase of ITV

The UK's culture secretary, Lisa Nandy, has said she is "minded to intervene" in the planned £1.6bn purchase of ITV by the broadcaster Sky. The step paves the way for deeper scrutiny of a deal that would create the country's biggest commercial broadcaster.

Sky, which is owned by the US media giant Comcast, announced over the summer that it had agreed to buy ITV's broadcasting and streaming arm. The deal would mark a major change in the ownership of Britain's public service media. Sky presents it as a chance to build a "UK-focused national streaming champion" able to survive in a market dominated by Netflix, YouTube and Amazon Prime Video.

Public interest considerations

Nandy said her decision relates to a series of public interest considerations. These include the need for free expression of opinion in news media, a sufficient plurality of views, and a sufficient plurality of people controlling media enterprises. She added that she must also safeguard the availability of a wide range of high-quality broadcasting and on-demand programmes that appeal to a variety of tastes and interests.

The move is a formal part of the takeover process. The companies now have five days to respond. If Nandy decides to intervene, formal investigations would be launched by Ofcom, the media industry regulator, and the Competition and Markets Authority.

Industry background

The TV industry is under heavy pressure as competition from streamers has grown and audiences have shifted to digital platforms such as YouTube. Few in the sector therefore expect the deal to be blocked. Big mergers have already taken place across the media world, as even large players believe they need more scale to compete globally.

Netflix tried to buy Warner Bros Discovery, which was eventually acquired by Paramount in a $110bn (£85bn) deal. The new company, now called Skydance, will be led by David Ellison, the son of a billionaire tech mogul.

Nandy also threatened to intervene in that deal because the UK's Channel 5 is owned by Paramount. She eventually allowed it to proceed after securing significant concessions on its commitments to the UK and its content. Under those guarantees, Channel 5 will continue as a public service broadcaster until the end of 2034, and Channel 5 News will keep its editorial independence.