The proposed £1.6 billion takeover of ITV’s television and streaming business by Sky could face further hurdles after Culture Secretary Lisa Nandy said she was minded to intervene in the deal.
In a statement to Parliament, Nandy said she was examining the proposed merger on public interest grounds, raising concerns about the diversity of news providers and the level of influence Sky could have over the UK’s media landscape.
Under the Enterprise Act, the government can intervene in media mergers where there are concerns about freedom of expression and ensuring a sufficient range of voices in news broadcasting.
Nandy said there were reasonable grounds to believe the deal could affect the availability of a wide range of high-quality and varied programming on the on-demand platforms increasingly used by audiences across the UK.
The government is also considering whether existing legislation should be extended to cover streaming and on-demand services more explicitly. Current rules do not fully address the potential impact of mergers on these platforms.
If Nandy decides to intervene on this basis, she said she would introduce legislation to amend Section 58 of the Enterprise Act.
ITV agreed to sell its media and entertainment business to Sky for £1.6 billion in July, following months of discussions. The deal, which has been under consideration since late 2025, would see Sky take control of ITV’s terrestrial television channels and streaming service ITVX.
When the agreement was announced, the companies said the merger would create a stronger UK media business, better positioned to compete with international streaming giants such as Netflix and Disney+.
However, questions remain over what the takeover could mean for ITV’s future programming and public service broadcasting commitments.
ITV is legally required to provide a free-to-air television service until at least 2034 under its public service broadcasting licence. There are also potential concerns about whether Sky might seek to reduce costs by changing programming arrangements or renegotiating contracts in the future.
Sky has said it remains confident the deal would strengthen British media, support homegrown programming and maintain trusted news services.
A spokesperson said the company had already made commitments to protect ITV’s identity, its free-to-air services and its public service broadcasting obligations. Sky also pledged to ensure ITV News and Sky News would remain separate editorial voices.
ITV, which would become a standalone television production business following the sale, said the possibility of government intervention was not unexpected and that it would fully cooperate with the review.
The company described the process as another important step towards creating a UK media business with the scale and resources to compete more effectively with global streaming platforms, benefiting viewers, advertisers and the creative industries.
Nandy stressed that she had not yet made a final decision on whether to intervene. Sky and ITV have until 20 October to respond to the government’s concerns.
The outcome could have significant implications for the future ownership of ITV, the UK’s broadcasting landscape and the balance between traditional television and streaming services.