U.K. Regulators Get Green Light for Investigation of Sky’s $2.1 Billion ITV Megadeal

Government orders formal review

Lisa Nandy announced the intervention in the London parliament on Wednesday. The notice asks Ofcom and the Competition and Markets Authority to examine the proposed transaction. Nandy said she had considered the companies’ responses to concerns raised earlier. She had previously said she was minded to intervene on public-interest grounds.

What the proposed deal includes

ITV Studios, the broadcaster’s production business, is not part of the sale and would continue as a separate company. The proposed takeover is also described as a $2.1 billion deal.

Support and concerns over scale

Critics, however, have raised concerns about the market power of the combined business. The government’s stated worries about concentration led to the review process.

Sky’s wider media operations

Sky runs pay-TV and streaming services in the U.K., Ireland and Italy, and has expanded into broadband and mobile services. Its production company, Sky Studios, is led by Cécile Frot-Coutaz and has increased investment in original programming.

Sky Studios productions include Mary & George, The Tattooist of Auschwitz and The Day of the Jackal. Comcast bought Sky in 2018.