Sky’s $2.1 Billion ITV Megadeal: U.K. Government Eyes Intervention

The U.K. government is “minded to intervene” in the planned $2.1 billion takeover of ITV’s TV networks and streaming assets by Comcast‘s Sky, U.K. Culture Secretary Lisa Nandy said on Thursday.

The ITV-Sky deal promises to bring together Britain’s largest pay-TV operator with its largest commercial free-to-air broadcaster. Sky CEO Dana Strong called it “a defining moment for British media.” ITV CEO Carolyn McCall touted it as the creation of “a U.K. champion with the scale and resources to better compete with global streaming platforms.” But critics have expressed concerns about the merged entity’s market power. And now, the Labour Party government in the U.K. has also cited concentration worries.

During an appearance in the London parliament, she mentioned “public interest considerations,” such as “the need for free expression of opinion in news media” and “the need for a sufficient plurality of views in news media in each market.” Nandy also highlighted “the need for the availability throughout the United Kingdom of a wide range of broadcasting, on-demand programs or both.”

ITV agreed to sell its media and entertainment arm to Sky for £1.6 billion in July. The deal covers ITV’s terrestrial TV channels and streaming service ITVX.

Production arm ITV Studios would continue operating as a separate company.

Sky is led by CEO Dana Strong. It not only operates pay-TV and streaming businesses in the U.K., Ireland and Italy but also has been growing its telecom offerings, such as broadband and mobile phone operations. Sky also owns the production arm Sky Studios, which is led by Cécile Frot-Coutaz and has been growing its investment in original content creation. Recent Sky Studios productions have included the likes of Mary & George, starring Julianne Moore; The Tattooist of Auschwitz, starring Harvey Keitel; and The Day of the Jackal, starring Eddie Redmayne. Comcast acquired Sky in 2018.