The U.K. government has opened a review of Sky’s proposed acquisition of ITV’s Media & Entertainment business, valued at up to £1.6 billion, sending competition and media concerns to regulators.
Lisa Nandy, the U.K. secretary of state for Digital, Culture, Media and Sport, issued the Public Interest Intervention Notice (PIIN) on Nov. 4 under section 42 of the Enterprise Act 2002. She had told Sky and ITV on Oct. 15 that she was minded to intervene, then considered their responses before issuing the formal notice. The step does not approve or block the transaction.
The Competition and Markets Authority (CMA) will report on whether it has jurisdiction and on the deal’s competitive effects. Ofcom will assess media public-interest questions, including freedom of expression in news, the range of views available and diversity among media owners serving different audiences. Nandy also asked Ofcom to examine the availability of a wide range of high-quality broadcasting and on-demand programmes.
In her statement to Parliament, Nandy said the government would introduce legislation to extend an existing broadcasting consideration to on-demand programmes. The formal notice follows Nandy’s earlier provisional position on the deal.
The proposed sale covers ITV’s linear channels and streaming service ITVX; ITV Studios is excluded and would remain independent. Separately, Sky agreed to a five-year content supply deal with ITV Studios, with a minimum spend of £2.1 billion from 2028 through 2032.
ITV’s filing values the total consideration at up to £1.6 billion: £1.2 billion in cash, Sky’s Love Productions business valued at £200 million and up to £200 million in contingent cash. That payment is tied to ITV’s Total Advertising Revenue exceeding £1.7 billion in fiscal 2027, subject to certain trading balance adjustments. If payable, it is expected in the second half of 2028.
ITV expects to return about £950 million to shareholders after completion, excluding any contingent payment. It forecasts gross transaction and separation costs of about £185 million, or £155 million after tax, over three to four years. Sky has said the combination would help it compete with global streaming platforms. In its July announcement, the company estimated the combined business would account for about 20% of U.K. in-home viewing, behind the BBC and ahead of YouTube.
Jan. 27, 2027, is the deadline for the two assessments. Nandy will weigh their findings before deciding whether the CMA should examine the proposed acquisition in greater depth.
