Regulators tasked with scrutinising Sky's £1.6bn ITV deal by culture secretary

Regulators will scrutinise Sky's £1.6bn deal to buy ITV's media and entertainment arm after the intervention of the culture secretary. <p>Lisa Nandy issued a Public Interest Intervention Notice on Wednesday, which paves the way for the Competition and Markets Authority (CMA) and regulator Ofcom to probe <a href="https://news.sky.com/story/sky-to-pay-1-6bn-for-itvs-broadcast-and-streaming-division-13531722" target="_self"><strong>the takeover</strong></a>.</p><p>The two bodies will report back to her on the impact of the deal on media plurality in the UK and free speech by 27 January.</p><p>Ms Nandy said she will also bring forward new streaming legislation in view of her "specific concerns" over the tie-up.</p><p>Following reports from the CMA and Ofcom, she may then decide to refer the deal to the CMA for a further in-depth investigation.</p><widget id="3"></widget><p>She had already said last month that she was <a href="https://news.sky.com/story/sky-itv-deal-culture-secretary-minded-to-intervene-13599540" target="_self"><strong>"minded to intervene"</strong></a> on public interest grounds.</p><p>While existing legislation specifies a public interest consideration on the need for the availability, throughout the UK, of a wide range of broadcasting, she said this should apply to on-demand programmes too.</p><p>The culture secretary said this change would reflect "modern viewing habits" and mirror her own "specific concerns" with the merger.</p><p>ITV struck a deal in July to sell its media and entertainment division to Sky, in a move which would create a major competitor to the global streaming giants.</p><p>The sale includes ITV's terrestrial TV channels and streaming service ITVX but does not include its production arm, ITV Studios, which makes shows including I'm A Celebrity and popular dramas such as Mr Bates Vs The Post Office.</p> <widget id="4"></widget><p><strong>More from Sky News:</strong><br /><strong><a href="https://news.sky.com/story/parliament-risks-catastrophic-event-without-urgent-renovation-mps-warn-13607723" target="_self">Parliament risks 'catastrophic event'</a><br /><a href="https://news.sky.com/story/dozens-arrested-outside-court-hearing-palestine-action-ban-challenge-13607796" target="_self">Arrests ahead of Palestine Action hearing</a></strong></p><p>Responding to the news, a Sky spokesperson said: "We note the secretary of state's decision to issue a Public Interest Intervention Notice and look forward to engaging constructively in the review.</p><p>"Bringing Sky and ITV Media & Entertainment together will create a stronger British media business, better equipped to compete with global streamers, support British content and deliver more for viewers.</p><p>"We believe the transaction is in the public interest, with clear commitments already made to protect ITV's identity, public service broadcasting obligations and the distinct editorial voices of Sky News and ITV News."</p> <widget id="1"></widget><p>ITV also welcomed the news, with a spokesperson describing the move as: "A major milestone in the regulatory review process towards creating a UK champion with the scale and resources to better compete with global streaming platforms, benefiting viewers, advertisers, the UK creative industries and the delivery of public service broadcasting."</p><p>The spokesperson added that the company looked forward to co-operating with the regulators and the Public Interest Intervention Notice.</p>