UK opens public interest review of Sky's £1.6 billion ITV deal

The British government has opened a public interest investigation into Sky's proposed £1.6 billion purchase of ITV's media and entertainment arm, Senal News reported. Culture Secretary Lisa Nandy issued a Public Interest Intervention Notice, which requires the Competition and Markets Authority and the communications regulator Ofcom to examine the transaction.

The two regulators must report by January 27 on how the deal would affect media plurality, competition and freedom of speech. Nandy could then refer the transaction to the CMA for a deeper investigation.

The acquisition, announced in July, covers ITV's free-to-air channels and its streaming service ITVX. ITV Studios, the production arm behind programs including "I'm A Celebrity" and "Mr Bates vs The Post Office," is not included and would stay independent.

Sky, owned by Comcast, is pursuing the combination to bolster its position against global streaming rivals. If the deal clears, the merged media business is expected to sit within NBCUniversal after that unit's separation from Comcast.

The intervention also points to a change in UK media law. Nandy said "existing public interest provisions should extend beyond traditional broadcasting to include streaming services and on-demand content," arguing the rules should track how audiences now watch television.

This story was first reported by Senal News.