Culture Secretary formally intervenes in Sky’s £1.6bn ITV deal

Culture Secretary Lisa Nandy has tasked regulators with scrutinising Sky’s £1.6 billion deal to buy ITV’s media and entertainment arm after stepping in over public interest concerns.

Ms Nandy announced her decision to issue a so-called Public Interest Intervention Notice, which paves the way for the Competition and Markets Authority (CMA) and regulator Ofcom to probe the takeover and report back to her on the impact of the deal on media plurality in the UK and free speech by January 27.

She said she will also bring forward new streaming legislation in view of her “specific concerns” over the tie-up.

Lisa Nandy has decided to intervene in the deal / Credit: PA

Following reports from the CMA and Ofcom, she may then decide to refer the deal to the CMA for a further in-depth investigation.

Ms Nandy had already said last month she was “minded to intervene” on public interest grounds.

She said: “The legislation already specifies a public interest consideration on the need for the availability, throughout the UK, of a wide range of broadcasting which is both of high quality and calculated to appeal to a wide variety of tastes and interests.

“As I explained in my written statement dated 15 October, 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.”

ITV struck a deal in July to sell its media and entertainment division to Sky, in a move which would create a major competitor to the global streaming giants.

The sale includes ITV’s terrestrial TV channels and streaming service ITVX but does not include its production arm, ITV Studios, which makes shows including I’m A Celebrity and popular dramas such as Mr Bates Vs The Post Office.

A Sky spokesperson said: “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.

“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.”

ITV said Ms Nandy’s intervention was a “major milestone” in the regulatory process.

A spokesman for ITV added: “We look forward to co-operating fully with the CMA, Department for Digital, Culture, Media and Sport and Ofcom in the review and will respond formally to the public interest intervention notice.”