The government has formally intervened in Sky’s proposed £1.6bn acquisition of ITV’s media and entertainment business, ordering regulators to examine the transaction’s potential effects on competition, media plurality, and the availability of television and streaming content.
Culture Secretary Lisa Nandy issued a Public Interest Intervention Notice under the Enterprise Act 2002 on 4 November, requiring the Competition and Markets Authority (CMA) and Ofcom to report their findings by 5pm on 27 January 2027.
The decision follows the government’s preliminary intervention warning on 15 October and representations subsequently received from the companies. It establishes a formal regulatory process through which the public interest considerations surrounding the acquisition will be assessed.
Sky, which is owned by Comcast, agreed in July to acquire ITV Media and Entertainment Holdings. The transaction covers ITV’s television channels and ITVX streaming platform but excludes ITV Studios, the broadcaster’s production and distribution division.
The proposed acquisition would bring together two major British broadcasting businesses at a time when television operators face competition from international streaming services for audiences, advertising revenue, and programming investment.
Nandy’s intervention identifies three existing public interest considerations under the Enterprise Act: freedom of expression in news media, the plurality of views available to audiences, and the number of independently controlled media organisations serving different parts of the UK.
The government has also identified the need to consider the availability of a wide range of high-quality broadcasting and on-demand programmes appealing to different audiences.
The legislation currently addresses the availability of broadcasting content. Nandy intends to amend the relevant provision to extend that consideration explicitly to on-demand services, reflecting changes in how audiences access programmes.
In her parliamentary statement, she said the provision should be modified to apply to on-demand programming “in line with modern viewing habits and my specific concerns regarding this merger”.
The CMA will examine jurisdictional and competition matters arising from the proposed transaction, while Ofcom will assess the specified media public interest considerations. Both reports will inform the government’s decision on whether the acquisition requires further investigation.
The regulatory process does not establish that the transaction would harm competition or media plurality. It provides a mechanism for examining whether the identified concerns warrant additional scrutiny before the acquisition proceeds.
Sky has maintained that combining its operations with ITV’s media and entertainment business would create a stronger British competitor to international streaming platforms.
The company has also outlined commitments concerning ITV’s identity, its public service broadcasting obligations, and the separate editorial voices of Sky News and ITV News.
ITV has indicated that it will cooperate with the regulatory process. Its production business, ITV Studios, is not included in the proposed sale and would remain outside the combined broadcasting operation.
Media plurality is a separate consideration from conventional competition assessments. While competition investigations examine market structures and commercial effects, plurality assessments consider whether audiences retain access to sufficiently varied sources of news and independently controlled media organisations.
The distinction is particularly relevant to a proposed combination of broadcasters operating television channels, news services, and digital distribution platforms.
The intervention also extends consideration of the transaction beyond traditional broadcasting to on-demand programming, acknowledging the role that streaming services now play in the British media market.
Once the CMA and Ofcom have submitted their reports, Nandy must decide whether to refer the proposed acquisition for a more detailed investigation under section 45 of the Enterprise Act.
The government has confirmed that Parliament will be updated after the regulatory findings have been received and considered. The statutory reporting deadline remains 27 January 2027.
