Nandy 'minded to intervene' in Sky's £1.6bn takeover of ITV entertainment arm

Key points

• Culture Secretary Lisa Nandy is considering a public interest intervention notice into Sky's £1.6bn purchase of ITV's entertainment arm.
• Nandy cited concerns about free expression and the range of views in UK news media.
• Sky and ITV have until 20 October to respond to her concerns.

Culture Secretary Lisa Nandy has told Sky and ITV she is minded to intervene in Sky's £1.6bn takeover of ITV's entertainment arm. She said there were reasonable grounds to believe the deal could affect free expression in the media and the variety of Britain's news landscape.

The two companies announced in July that Sky had agreed to buy ITV's broadcasting business, including its free-to-air TV channels and the ITVX streaming service. The deal excludes ITV Studios, the production arm behind shows such as Love Island and I'm a Celebrity... Get Me Out of Here.

What Nandy is considering

Nandy has told the companies she is considering issuing a public interest intervention notice to the competition watchdog, forcing it to investigate the tie-up. In a letter, she said she was minded to order the investigation so the Competition and Markets Authority could address public interest considerations.

These include the need for free expression of opinion in news media, a range of views in news media across the UK, a range of people controlling the media, and a wide range of programmes offered across the UK. The letter said Nandy recognised Sky News and ITV News were two of the most prominent sources of television news in the UK, with a joint 26% share of viewers.

If I decide to intervene on the basis of this new public interest consideration, I will bring forward legislation... to extend the application of the public interest consideration relating to the availability of a wide range of broadcasting to on-demand programmes.

— Lisa Nandy

Concerns and company responses

Nandy believes the tie-up could over time undermine the range of views available to viewers, with 86% of the news market controlled by the BBC and Sky/ITV. The North of England, nations other than England, and people from lower socio-economic backgrounds could be particularly hard hit because their main source of news is broadcast news, the letter argued. Sky and ITV have until 20 October to respond.

A Sky spokesperson said the company had already made clear commitments to protect ITV's identity, its free-to-air services and public service broadcasting obligations, and to ensure ITV News and Sky News remain distinct editorial voices. An ITV spokesperson said ITV welcomed the letter and looked forward to fully co-operating in the process, calling it another important milestone towards creating a UK player able to better compete with global streaming platforms.