The Culture Secretary has formally intervened in Sky’s takeover of ITV and tasked two regulators with scrutinising the deal.
Lisa Nandy recently said she had a number of potential public interest concerns after 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.
Nandy has now issued a Public Interest Intervention Notice after considering representations from both Sky and ITV.
She has asked the Competition and Markets Authority and Ofcom to provide reports on the impact of the deal by 27th January – respectively focusing on jurisdiction and competition, and media public-interest issues.
As well as examining news plurality and freedom of expression, she has added a new consideration covering the range and quality of programmes available through on-demand services. She will then update Parliament and decide whether to refer the transaction for a more detailed investigation.
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.
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