£1.6bn Sky ITV takeover faces 27 January regulator verdict after Nandy steps in

The Sky ITV takeover has entered a new and more uncertain phase after Culture Secretary Lisa Nandy formally intervened on public interest grounds, handing the Competition and Markets Authority (CMA) and Ofcom until 27 January to assess the £1.6bn deal.

What Nandy has actually done

On Wednesday, Nandy confirmed she had issued a Public Interest Intervention Notice (PIIN). The notice is a formal mechanism that lets a minister ask regulators to look beyond ordinary competition questions. In this case, the focus is media plurality and free speech. She had signalled the move last month, saying she was “minded to intervene”, and said she had now “fully considered” the representations made to her.

The notice does not block anything. It starts a review. Once the CMA and Ofcom report back, Nandy can decide whether to refer the deal for a more detailed investigation by the CMA. The deal’s timetable therefore turns on a decision that is still months away.

Why the Sky ITV takeover worries the government

Under the agreement struck in July, Sky would take ITV’s Media and Entertainment division. That covers ITV’s main broadcast channels and the ITVX streaming service. ITV Studios, which makes programmes such as Love Island and I’m A Celebrity, is not part of the sale.

The concern, as reported, centres on what happens to the range of voices in British news if Sky and ITV come together. Nandy warned last month that the combination could pose a risk to freedom of expression and the diversity of views in news media. Sky News and ITV News would sit under common ownership, even though Sky says they will stay editorially separate.

The reports differ slightly on how the work will be divided. One account says the CMA will examine competition and jurisdictional matters while Ofcom scrutinises the public interest implications. Others say both bodies will report on plurality and free speech. Either way, the 27 January deadline applies to both.

A change to the rules as well

The intervention comes with a second move that may matter beyond this one deal. Nandy said she will bring forward streaming legislation to extend an existing public interest consideration to on-demand programmes. At present, the law refers to the availability across the UK of a wide range of high-quality broadcasting that appeals to a variety of tastes and interests. She argues that wording should cover on-demand content “in line with modern viewing habits”, citing her “specific concerns” about this merger.

That is significant because ITVX, a streaming service, is part of what Sky would acquire. Updating the rules would put on-demand platforms under the same scrutiny as traditional broadcasters. It also suggests the government sees this deal as a test case for how media mergers should be judged in a streaming era.

The companies’ case

Sky and ITV argue the tie-up would create a stronger British media business able to compete with global streamers such as Netflix and Disney+. The companies expect about £200m in annual cost savings, largely from combining marketing and technology operations. Sky has pledged to protect ITV’s free-to-air services and public service broadcasting obligations, and to keep ITV News and Sky News editorially distinct.

A Sky spokesperson said the company believes the transaction is in the public interest, with “clear commitments already made”. ITV called the intervention a “major milestone” in the regulatory process and said it would co-operate fully with the CMA, the Department for Culture, Media and Sport and Ofcom, and respond formally to the notice. Neither company has objected to the review.

What to watch next

The next date to watch is 27 January, when the regulators’ findings land on Nandy’s desk. She will then choose whether to order the deeper investigation. Until then, the Sky ITV takeover remains a proposal under review rather than a done deal. The outcome could shape not only the future of two of Britain’s best-known broadcasters but also how the government regulates streaming in future.

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File photo: Official portrait of Lisa Nandy MP crop 2.jpg by Richard Townshend, CC BY 3.0, via Wikimedia Commons.