Government Signals Possible Intervention in Sky-ITV Deal

The UK Government has indicated it may intervene in Sky’s proposed £1.6 billion acquisition of ITV’s broadcasting and streaming business, citing concerns over media plurality, ownership and the diversity of content available to audiences. Culture Secretary Lisa Nandy announced on 15 October that she was minded to intervene, giving both companies until 20 October to respond.

The deal, agreed in July 2026, would see Sky acquire ITV’s Media and Entertainment business, including its free-to-air television channels and streaming platform ITVX. ITV Studios, which produces programmes for UK and international markets, is excluded from the sale and would remain a separate production business.

Nandy raised concerns about the potential impact on the range of news providers available in the UK and the concentration of media ownership. Sky already operates Sky News, while ITV’s broadcasting business includes national news produced by ITN and regional news services. The Government will examine whether the proposed acquisition could affect the diversity of voices and editorial independence in UK news.

The proposed intervention also raises questions about the future availability of high-quality programming across broadcast and on-demand services. Nandy is considering extending the existing public-interest test under the Enterprise Act 2002 to cover streaming and on-demand content, reflecting changes in how audiences watch television. Introducing this additional ground would require legislative amendments.

Sky has said it remains confident that combining its business with ITV’s broadcasting and streaming operations would create a stronger UK media company better positioned to compete with global platforms such as Netflix and Amazon. The company has also committed to protecting ITV’s identity, free-to-air services and public service broadcasting obligations, while maintaining distinct editorial voices for Sky News and ITV News. ITV has said it will cooperate with the review.

If the Culture Secretary proceeds with a formal intervention, Ofcom would assess the public-interest implications while the Competition and Markets Authority (CMA) would examine the merger and its potential impact on competition. The findings would inform the Government’s decision on whether to refer the deal for a more detailed investigation. The outcome could have significant implications for UK broadcasting, streaming competition and media regulation.