- Mediaset acquires ProSiebenSat.1 9.6% stake
- Investment aims to “develop scale economies”
- Deal is worth an estimated €340 million
Mediaset has acquired a 9.6% stake in German broadcaster ProSiebenSat.1 today which includes 9.9% of the voting rights of the firm.
Commercial television operator in Italy and Spain Mediaset Group has cemented its relationship with ProSiebenSat.1, claiming the aim of the alliance is to “develop scale economies which are crucial for the future of European TV.”
Both companies have collaborated over the last five as members of the European Media Alliance (EMA) and have described the acquisition as “friendly” aimed at strengthening the existing industrial relationship.
ProSiebenSat.1 is one of Europe’s top television groups with leading positions in Germany, Austria and Switzerland.
Mediaset chief executive Pier Silvio Berlusconi said: “The rapid process of globalisation that is determining the international scenario is such that European media companies like us need to join forces if we are to continue to compete, or even just resist, in terms of our European cultural identity, eventual attacks by the global giants.
“It is in this spirit of collaboration and shared vision that Mediaset, the leader in Italy and Spain, has decided to invest in ProSiebenSat.1. An investment that, we are sure, will create tangible value for both groups.”
The total purchase is worth around €340 million based on ProSiebenSat.1’s closing share price yesterday, reported Blomberg. ProSieben shares gained as much as 4.9% in early Frankfurt trading, while Mediaset shares gained 2.8%.
Last month ProSiebensSat.1 announced it would develop initiatives in video streaming technology to modernise workflows with its partners in the EMA.
On the join initiatives, ProSiebenSat.1 chief executive Max Conze said: “We all fundamentally believe that by international cooperation, we will obtain a competitive edge in our local markets.”
Broadcasters in Europe are looking to gain viewer traction against Netflix and Amazon by gaining scale through acquisitions and streaming partnerships.
Yesterday IBC365 reported Canal+ agreed to buy Luxembourg-based pay-TV operator M7 in a deal valued at $1.1 billion.
The deal, which is subject to approval from the European Commission, would see Canal Plus’s base hit 12 million across Europe, taking its number of markets to nine, including Poland, Switzerland and France.
Disney completed the acquisition of 21st Century Fox earlier this year after more than a year of negotiations and a $71.3 billion exchange.
Disney announced the merger was a strategic move to “meet growing consumer demand and increase its international footprint and expand its direct-to-consumer offerings.”
- Read more: Disney completes $71.3bn Fox acquisition
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