ITV Expects Tough Competition Review for Sky Merger

The Hollywood Reporter

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ITV believes that the approval of its deal with Sky, the largest merger in UK broadcasting history, will not be easy. After Comcast-owned Sky announced plans to acquire ITV's networks and streaming business for $2.13 billion (£1.6 billion), ITV CEO Carolyn McCall acknowledged at a press conference that the competition authorities' review would be thorough. McCall stated, "We expect the deal to undergo a very comprehensive review. We anticipate that this process will move to the second phase," and noted that the regulatory approval process in the UK could take "12 to 18 months."

The Sky-ITV deal was not expected to receive a quick approval, as it brings together the UK's leading free-to-air broadcaster and the largest pay-TV operator. Sky's previous owner, BSkyB, attempted to acquire ITV in 2006, but regulators rejected it on the grounds that it threatened media diversity. A year later, ITV, BBC, and Channel 4 proposed Project Kangaroo, a joint streaming initiative years before Netflix, but it was also rejected for potentially restricting competition.

The company hopes regulators will accept the argument that "the market has fundamentally changed." ITV and Sky are now competing not only with each other but also with global streaming giants and technology platforms. McCall remarked, "The UK advertising market is not just a space where three broadcasters compete; it is a massive market with numerous media companies vying for video advertising." She emphasized that when Sky and ITV merge, they will hold "about 20% of the video advertising market in the UK," which is less than YouTube's market share.

ITV is working to strengthen its commitments as a public service broadcaster post-merger. McCall stated that ITV will continue to offer its most popular programs — from series like Coronation Street and Emmerdale to reality shows like Love Island — for free to UK viewers and will source at least 25% of its programming from independent producers.