Culture secretary Lisa Nandy has today said she is "minded to intervene" in Sky's proposed £1.6bn acquisition of ITV's Media & Entertainment business, raising the prospect of formal investigations by Ofcom and the Competition and Markets Authority (CMA).

In a statement to Parliament on Thursday, Nandy said she had informed Sky and ITV that she was considering intervention on several public-interest grounds, including the need to protect free expression in news media, maintain a sufficient plurality of news providers and ensure a diverse range of media ownership across the UK.

The culture secretary also indicated she was considering a new public-interest test focused on the availability of high-quality broadcasting and on-demand programming, arguing that existing legislation was drafted primarily for traditional linear television and does not adequately reflect the growing importance of streaming services.

Nandy said: "Having considered the anticipated merger, I am of the view that there are reasonable grounds to believe that it might affect availability of a wide range of high-quality and varied programming on the on-demand platforms that are now widely used by UK audiences."

If Nandy proceeds with an intervention notice, Ofcom would be asked to examine the deal's implications for media plurality and broadcasting, while the CMA would assess competition issues before reporting back to ministers.

The intervention threat represents a significant regulatory hurdle for the transaction and suggests the government is taking a closer look not only at competition and news plurality, but also at the future provision of UK broadcasting and streaming content.

The transaction, first announced in November, includes £1.2bn in cash, Love Productions, valued at £200m, and up to £200m in contingent consideration linked to advertising performance in 2027, and would leave ITV Studios as a standalone London-listed content business.

Sky and ITV have until 20 October to respond to the government's concerns.

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