UK Regulators Ordered to Probe 1.6 Billion Pound Sky-ITV Deal

A proposed 1.6 billion pound ($2.3 billion) acquisition of ITV’s media and entertainment division by Sky has triggered a formal regulatory review in the United Kingdom. Culture Secretary Lisa Nandy issued a Public Interest Intervention Notice on Wednesday to initiate the process.

The directive requires the Competition and Markets Authority and media regulator Ofcom to investigate the transaction. Both bodies must submit their findings to Nandy by January 27. Their analysis will focus on how the merger affects the UK media sector and the state of free speech.

Following the receipt of those reports, Nandy retains the authority to refer the deal to the CMA for a deeper inquiry. She also announced that her department will introduce new streaming legislation in response to specific concerns regarding the proposed combination.

ITV and Sky reached an agreement in July to sell the broadcaster’s media and entertainment assets. The transaction covers ITV’s terrestrial television channels and streaming service. ITV Studios, the production unit behind programs such as I’m A Celebrity, will remain a separate independent entity.

Sky stated that the tie-up serves the public interest. The company cited existing commitments to preserve ITV’s identity and maintain the distinct editorial voices of Sky News and ITV News. ITV said it intends to co-operate fully with the regulatory investigation.

If approved, the combined Sky-ITV entity will become part of NBCUniversal. This move aligns with the completion of NBCUniversal’s separation from its parent company, Comcast.