The culture secretary warned that combining the two broadcasters could reduce the range of news voices across the country. Sky and ITV have been given time to respond before regulators are formally asked to investigate.
British Culture Secretary Lisa Nandy told the London parliament on Thursday that she is minded to intervene in Sky’s proposed £1.6 billion takeover of ITV’s broadcasting operations. As BBC News reported, Nandy raised concerns that combining Britain’s largest pay-television company with its largest commercial free-to-air broadcaster could harm free expression and shrink the variety of television news available to the public. The transaction covers ITV’s terrestrial channels and its streaming platform ITVX, while its production division, ITV Studios, would be separated into an independent company.
Concerns over news diversity and audience reach
The culture secretary warned in a formal letter to both companies that a combined business could narrow the diversity of news across the United Kingdom. Sky News and ITV News currently represent a joint 26% share of television news viewers. Nandy pointed out that together with the BBC, the merged group would control 86% of the country’s television news market, leaving viewers outside that circle with Channel 4 as their main broadcast alternative.
Nandy said the reduction in independent voices could fall hardest on viewers in the North of England, audiences in Scotland, Wales and Northern Ireland, and people from lower socio-economic backgrounds. Those groups rely heavily on broadcast television as their primary source of news. According to The Hollywood Reporter, Nandy also pointed to public interest rules that require a wide range of broadcasting and on-demand programming across the country. Deadline reported that Nandy is considering new legislation to ensure these protections cover streaming services, noting current laws were written when audiences mainly watched traditional linear channels.
Commercial competition and company defenses
Sky defended the acquisition, maintaining that the combined business would strengthen the domestic television sector. A Sky statement said, “We remain confident that bringing Sky and ITV’s media and entertainment business together will create a stronger British media.” Sky also committed to keeping ITV’s free-to-air programming, its brand identity, and its public service broadcasting commitments, while operating Sky News and ITV News under separate editorial leadership.
Executives have framed the deal as a necessary response to international streaming competitors. ITV Chief Executive Carolyn McCall described the merger as the formation of a British champion with the scale to take on worldwide streaming platforms. Sky Chief Executive Dana Strong called the agreement “a defining moment for British media.”
Former ITV chair Sir Peter Bazalgette told Variety earlier this year that media consolidation offers the only realistic path for public service broadcasters to survive intense digital competition. Bazalgette explained that domestic broadcasters across Europe face pressure from global streaming platforms and video services like YouTube, TikTok and Meta. In the overall video advertising market, he noted, Sky and ITV together hold only a 20% to 30% share.
Disagreements over timing and corporate structure
Accounts differ on when the deal was first reached and how Sky is currently structured. BBC News, Variety and The Hollywood Reporter reported that the agreement was struck in July, while Deadline stated the transaction was announced late last year. Outlets also differed on Sky’s corporate status. Variety described Sky as owned by Comcast, and The Hollywood Reporter noted Comcast acquired the broadcaster in 2018. Deadline reported that Sky was separated from Comcast earlier this year to sit under the NBCUniversal umbrella.
Regulatory next steps
Nandy has given both companies a window to submit formal arguments before making a final ruling. Variety reported the deadline for submissions is Oct. 20, while Deadline stated the companies have five days to respond.
If Nandy proceeds, she will issue a public interest intervention notice. That move would instruct media regulator Ofcom to assess the public interest implications and direct the Competition and Markets Authority to examine whether the transaction would harm market competition. The competition authority could then launch an in-depth investigation. Nandy has not yet issued a final ruling and said she plans to update parliament soon.
