Culture Secretary Lisa Nandy has said she is “minded to intervene” in Sky’s takeover of ITV.
Comcast, the American owner of Sky, agreed a £1.6 billion deal in July to acquire the broadcast arm of ITV.
The deal, which includes ITV’s free-to-air channels and on-demand streaming service ITVX, would create the UK’s biggest commercial broadcaster.
However Nandy said she has a number of potential public interest concerns and has written to both companies before she takes a final decision on whether to call in regulators to scrutinise the deal.
Sky and ITV have been given until Tuesday 20th October to respond to her letters.
In July ITV plc said US telecoms giant Comcast had agreed to sell Sky’s Love Productions business to ITV Studios as part of the package.
ITV Studios, one of the world’s biggest production companies – behind shows including I’m a Celebrity… – will remain listed on the London Stock Exchange.
The transaction, expected to complete in H2 2027, is for an initial cash consideration of £1.2bn. It values Love Productions – which makes Great British Bake Off and The Piano – at £200m, while a further £200m may be payable in H2 2028, subject to total advertising revenue performance in FY 2027 and certain trading balance adjustments.
Comcast committed to a long-term supply agreement with ITV Studios, with a minimum spend commitment of £2.1bn over 2028-32.
Nandy is concerned over a reduction of freedom of expression of opinion in news media, as well as plurality of views; and also over the need for sufficient plurality of persons with control of the media enterprises.
She also cited the need for UK broadcasters to cater for a wide range of tastes and interests among the UK public.
“If I decide to issue an Intervention Notice, the next stage would be for Ofcom to assess and report to me on the public interest considerations, and for the Competition and Markets Authority (CMA) to assess and report to me on whether a relevant merger situation has been created, and any impact this may have on competition,” she stated.
“Following these reports, I would need to decide whether to refer the matter for a more detailed investigation by the CMA under section 45 of the act.”
A spokesperson for Sky said: “We will carefully consider the Secretary of State’s letter and look forward to engaging constructively as the review progresses.
“We remain confident that bringing Sky and ITV’s media and entertainment business together will create a stronger British media.”
ITV said the deal would help it “compete with global streaming platforms, benefiting viewers, advertisers and the UK creative industries”.