British Culture Secretary Lisa Nandy has instructed regulators to scrutinize the proposed 1.6 billion-pound ($2.3 billion) takeover of ITV’s media and entertainment arm by Sky, the U.K.-based provider owned by U.S. company Comcast. Nandy issued a Public Interest Intervention Notice, enabling the Competition and Markets Authority (CMA) and media regulator Ofcom to investigate the deal's potential effects.
Regulators are expected to report back to Nandy on the proposed tie-up's impact on the U.K. media landscape and free speech by January 27. Following these reports, a decision may be made to refer the deal to the CMA for a more in-depth investigation.
Nandy also indicated that new streaming legislation will be introduced, citing "specific concerns" related to the proposed merger. ITV, the U.K.'s largest commercial broadcaster, agreed in July to sell its media and entertainment division, which includes its terrestrial television channels and streaming service, to Sky. This consolidation aims to create a significant competitor to global streaming giants. ITV's production arm, ITV Studios, will remain a separate entity.
Sky stated it believes 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 has expressed its intention to “co-operate fully” with the investigation. If approved, the combined Sky-ITV entity would become part of NBCUniversal following its split from Comcast.