The U.K. secretary of state for culture is leaning toward stepping in over the £1.6 billion ($2.1 billion) proposed merger between Sky and ITV.
Culture Secretary Lisa Nandy has served notice that she is considering action on “public interest” grounds, citing concerns such as protecting free expression in news media, ensuring a sufficient diversity of viewpoints in news in each market, and preserving the availability across the United Kingdom of a wide range of broadcast and on‑demand programs.
Nandy also signaled she may push forward legislation to update the current public-interest test so it explicitly covers streaming services. She noted the law was written when most viewing happened via traditional linear broadcast channels. That concern previously surfaced during the review of the Paramount‑Warner‑Skydance transaction, where she likewise indicated she was inclined to intervene; that deal was later cleared and completed in the U.S. last week.
She emphasized she has not reached a final decision, and both Sky and ITV have five days to reply to her notice.
The next possible move would be for her to issue a formal intervention notice. That would prompt Ofcom to assess and report on the public-interest issues she’s flagged, while the Competition and Markets Authority (CMA) would examine whether the transaction creates a qualifying merger situation that could harm competition. Nandy could then refer the Sky‑ITV tie-up to the CMA for a more in‑depth investigation.
Nandy told lawmakers she will provide an update to Parliament in the near future.
When the Sky‑ITV tie-up was revealed late last year it stunned the broadcasting sector by bringing together the country’s main pay-TV operator and Britain’s longest-established commercial broadcaster. Sky—long part of the Comcast family—was separated earlier this year under the NBCUniversal umbrella. Industry attention has already turned to what the combined business will look like; notably, the deal does not include the producer-distributor ITV Studios. Sky Studios CEO Cécile Frot‑Coutaz said last month she’s interested in experimenting by making Sky series such as The Day of the Jackal and Brassic available free‑to‑air on ITV.
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