Culture minister Lisa Nandy said on Thursday that she was inclined to step into Comcast’s plan for Sky to buy ITV’s broadcast channels and streaming service. The deal is valued at £1.6 billion ($2.1 billion).
Nandy said she had potential concerns about how the deal could affect the range of news providers in Britain. She also raised worries about the extent of Sky’s control over the media.
Concerns over news diversity and media control
Nandy told the two companies she would also examine whether the deal could reduce the availability of high-quality programmes that appeal to a wide range of tastes and interests. She said that concern would extend to on-demand content as well as broadcast output.
She added that addressing it would require an amendment to the existing grounds for intervention, so that they reflect new viewing habits.
Sky and ITV respond to the government’s move
Sky agreed in July to buy ITV’s broadcast business, which includes the soap opera “Coronation Street”, national news provided by ITN and popular regional news shows. Sky already owns the rival news provider Sky News, as well as sports and entertainment channels.
Sky said on Thursday it remained confident the deal would create a stronger British media business. A spokesperson said the company had made clear commitments to protect ITV’s identity and public service broadcasting obligations.
ITV, which will become a standalone TV production business after the sale, said the intervention was not unexpected. A spokesperson called it another milestone in the regulatory review process.
Deadline for the companies to reply
The two companies have until October 20 to respond to Nandy’s concerns. ITV’s chief executive, Carolyn McCall, had said earlier that she expected the deal to face a lengthy review.
