Key facts
- ITV warned advertising revenue will fall more sharply than expected, the Observer reported.
- The £1.6 billion sale of ITV's media and entertainment arm to Sky was agreed in July 2026.
- Culture Secretary Lisa Nandy issued a public-interest intervention notice on November 4, 2026.
- The CMA and Ofcom must report to Nandy by January 27, 2027.
- Sky would pay £1.2 billion in cash and transfer Love Productions, valued at £200 million.
ITV warned of a sharper-than-expected fall in advertising revenue as its £1.6 billion sale of its media and entertainment arm to Sky faces a UK government investigation, according to a report by the Observer.
The deal, agreed in July 2026, would see Comcast-owned Sky pay £1.2 billion in cash, transfer Love Productions, valued at £200 million, and potentially pay another £200 million based partly on ITV's 2027 advertising performance. ITV Studios, the production business, is excluded and would remain with ITV.
On November 4, 2026, Culture Secretary Lisa Nandy issued a public-interest intervention notice. The Competition and Markets Authority will examine jurisdictional and competition questions, while Ofcom will consider media ownership, freedom of expression and programming diversity. Both must report by January 27, 2027, after which Nandy could order a deeper investigation.
ITV Media & Entertainment generated £850 million in advertising revenue in the first half of 2026, about 87 percent of its £975 million total revenue. Digital advertising sales rose 13 percent to £268 million, while ITVX's monthly active users climbed 10 percent to 17.9 million. Sky estimates the combined broadcasters would account for approximately 20 percent of all UK in-home viewing.
"ITVX is arguably the crown jewel of this deal," Paolo Pescatore, founder of media and telecommunications research firm PP Foresight, told the Observer.