Ofcom are to look into BSkyB's shock acquisition of a 17.9% stake in ITV.

According to MediaGuardian, Ofcom will have to decide whether the move constitutes a "change of control" at ITV and whether it would compromise the commercial broadcaster's obligations as a public service provider as well as its programme investment.

If Ofcom decides there has been a change of control then it would be down to the Office of Fair Trading to launch an inquiry under the Enterprise Act. If it finds against BSkyB, the satellite broadcaster could be forced to reduce its stake.

Meanwhile, Sir Richard Branson has launched an attack at Sky accusing the satellite TV group of a cynical attempt to control the British media by buying nearly a fifth of ITV.

"This move is seriously damaging to the interests of viewers, programme makers, artists and shareholders and the time has come for regulators, politicians and consumers to finally show that they're willing to stand up to reckless and cynical attempts to stifle competition and secure creeping control of the British media," Sir Richard Branson said.

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BSkyB in shock ITV move