Latest news with #ProSieben
Int'l Business Times
5 days ago
- Business
- Int'l Business Times
Berlin Wary As Berlusconi Group Closer To German Media Takeover
An Italian media group majority-owned by late leader Silvio Berlusconi's family moved closer to taking over a German broadcasting giant Wednesday, sparking warnings from Berlin that its journalistic independence must be maintained. ProSiebenSat.1, one of Germany's biggest private broadcasting groups, recommended its shareholders accept a fresh offer presented by MediaForEurope (MFE) last week, valuing the German company at nearly 1.9 billion euros ($2.2 billion). MFE, led by Pier Silvio Berlusconi, son of the late media tycoon and former politician, aims to build a pan-European group big enough to compete with increasingly popular streaming giants such as Netflix. The German government has however been wary of the potential takeover by MFE, and German Culture Minister Wolfram Weimer was quick to express concerns after ProSieben's recommendation. "Should MFE actually gain majority control of ProSiebenSat.1, we expect the editorial independence of the newsrooms to be preserved", he said on X, adding that any future cross-border European media group should be headquartered in Munich, where ProSieben is currently based. Weimer also added that he would discuss the mooted takeover with Pier Silvio Berlusconi in Berlin in September. Announcing its decision to back MFE's latest offer, the German group said the bid "underscores MFE's long-term investment and continued commitment to ProSiebenSat.1". A deal could also deliver annual savings of 150 million euros, it said in a statement. The Italians, who already had a substantial stake in ProSieben, had been competing with Czech group PPF for the German broadcasting giant. Last week MFE boosted the share component of its bid to 1.3 MFE shares for each of ProSieben's shares, while keeping the cash component the same at 4.48 euros per share. This values the shares of the German group at around eight euros, above PPF's all-cash offer of seven euros a share, which aimed to double its holding. PPF decided not to raise its own offer. MFE, the biggest commercial television network in Italy and one of the biggest in Europe, did not respond to ProSieben's announcement Wednesday. But announcing its improved offer last week, Pier Silvio Berlusconi said MFE was aiming to "build what is still lacking: a strong, locally rooted European group of sufficient size to compete globally". He also stressed that "MFE has always upheld its founding values: business ethics, pluralism, freedom of information, employment protection. It will continue to uphold these values at all times and everywhere." Formerly known as Mediaset, MFE has sought to acquire ProSieben on several occasions in the past -- its first attempt was back in 2003, with Berlin opposing the move. Silvio Berlusconi, who dominated Italian politics in the late 1990s and early 2000s, died in 2023.
Euractiv
5 days ago
- Business
- Euractiv
German broadcast giant backs takeover by Berlusconi group
German broadcasting giant ProSiebenSat.1 recommended on Wednesday that its shareholders accept an improved takeover offer from Italy's MediaForEurope group, majority-owned by the family of late former prime minister Silvio Berlusconi. MFE, led by Pier Silvio Berlusconi, son of the late media tycoon and politician, aims to build a pan-European group big enough to compete with increasingly popular streaming giants. But the German government has expressed concern that journalistic independence could be affected by a takeover. MFE had been competing for ProSieben against Czech group PPF. But ProSieben said its management had now decided to recommend that its shareholders accept the Italian bid, which values the German group at nearly €1.9 billion. The offer "underscores MFE's long-term investment and continued commitment to ProSiebenSat.1.," the German company, which operates 15 TV channels, said in a statement. Last week, the Italian group boosted the share component of its bid to 1.3 MFE shares for each of ProSieben's shares, while keeping the cash component the same at €4.48 per share. This values the shares of the German group at around eight euros, above PPF's all-cash offer of seven euros a share, which aimed to double its holding. PPF decided not to raise its own offer. The Italian group, which already owned a stake in ProSieben prior to seeking a takeover, will have to contend with worries in Berlin. Last month, German Culture Minister Wolfram Weimer told news outlet Der Spiegel that he was "concerned about the outcome" of the moves to take over ProSieben. "My concern revolves around the question of whether journalistic and economic independence will be preserved even after a change of ownership," he said, adding that Pier Silvio Berlusconi had been invited for talks in Berlin on the matter. Silvio Berlusconi, who dominated Italian politics in the late 1990s and early 2000s, died in 2023. (mm)
France 24
5 days ago
- Business
- France 24
German broadcast giant backs takeover by Berlusconi group
MFE, led by Pier Silvio Berlusconi, son of the late media tycoon and politician, aims to build a pan-European group big enough to compete with increasingly popular streaming giants. But the German government has expressed concern that journalistic independence could be affected by a takeover. MFE had been competing for ProSieben against Czech group PPF. But ProSieben said its management had now decided to recommend that its shareholders accept the Italian bid, which values the German group at nearly 1.9 billion euros ($2.2 billion). The offer "underscores MFE's long-term investment and continued commitment to ProSiebenSat.1.," the German company, which operates 15 TV channels, said in a statement. Last week the Italian group boosted the share component of its bid to 1.3 MFE shares for each of ProSieben's shares, while keeping the cash component the same at 4.48 euros per share. This values the shares of the German group at around eight euros, above PPF's all-cash offer of seven euros a share, which aimed to double its holding. PPF decided not to raise its own offer. The Italian group, which already owned a stake in ProSieben prior to seeking a takeover, will have to contend with worries in Berlin. Last month, German Culture Minister Wolfram Weimer told news outlet Der Spiegel that he was "concerned about the outcome" of the moves to take over ProSieben. "My concern revolves around the question of whether journalistic and economic independence will be preserved even after a change of ownership," he said, adding that Pier Silvio Berlusconi had been invited for talks in Berlin on the matter. Silvio Berlusconi, who dominated Italian politics in the late 1990s and early 2000s, died in 2023.
Reuters
28-07-2025
- Business
- Reuters
Berlusconi-backed MFE lifts bid for Germany's ProSieben in European TV drama
MILAN/MUNICH, July 28 (Reuters) - MFE-MediaForEurope (MFE) ( opens new tab, the TV group controlled by Italy's Berlusconi family, on Monday improved its cash-and-share offer for German peer ProSiebenSat.1 ( opens new tab as it pursues plans to build an advertising-funded pan-European broadcaster. With streaming giants such as Netflix (NFLX.O), opens new tab and Amazon Prime Video (AMZN.O), opens new tab encroaching upon legacy broadcasters, MFE sees cross-border deals as vital to withstand competition. "What is needed is a push to build what is still lacking: a strong, locally rooted European group of sufficient size to compete globally," MFE Chief Executive Pier Silvio Berlusconi said in a statement. MFE boosted the share component of its initial bid, which had been pitched at the minimum price allowed by law, and is now offering 1.3 billion euros ($1.5 billion) for the 70% of ProSieben it doesn't already own, with a 45% increase in the bid's value based on Friday's closing prices. The improved offer is higher than an all-cash counter-bid by ProSieben's second largest investor PPF. MFE is now offering 1.3 MFE A shares for each ProSieben share tendered, with the cash component unchanged at 4.48 euros. Shares in ProSieben jumped 11% on Monday to 7.87 euros, while MFE A shares fell 5.6%, which implies the bid values each ProSieben share at 7.94 euros. Czech conglomerate PPF, which owns private TV stations across six Eastern European countries, in May offered 7 euros to double its stake in the German broadcaster to up to 29.99%. A source familiar with PPF's thinking said MFE's bid remained unattractive for many ProSieben investors, given it contained just more shares and with lower voting rights compared with MFE's privileged shares. PPF declined to comment. Take-up of both offers has been negligible so far. MFE's bid for Munich-based ProSieben has drawn scrutiny from the German government. "A majority shareholding by MFE should not lead to a restriction of journalistic and economic independence and should not jeopardise Germany as a business location," a German government spokesperson said on Monday, echoing concerns expressed by Culture Minister Wolfram Weimer. In announcing the improved offer on Monday, the MFE CEO, the son of the late former Italian prime minister Silvio Berlusconi, said the group would stick to pluralism, freedom of information and employment protection. Berlusconi is due to meet the culture minister in Berlin after the summer break to discuss ProSieben. A person familiar with the matter said MFE had informed Berlin of its plan to raise its bid ahead of a weekend board meeting. MFE, which first invested in ProSieben in 2019, runs commercial TV operations in Italy and Spain. In an analyst presentation seen by Reuters, MFE pegged up to 419 million euros of additional operating profit within four years. Revenue initiatives, such as building a common platform for global advertisers, would generate nearly 46% of the upside. In a battle to catch up with U.S. heavyweights, European broadcaster RTL, which has large TV operations in Germany, last month announced an agreement to buy the local operations of pay TV group Sky. ProSieben, which has so far strived to remain independent, on Monday welcomed MFE's improved offer, adding its board would formulate a proper opinion in due course. CEO Bert Habets said the company is supportive of "a pan-European project, working closely together also with MFE", adding it would assess value creation potential mentioned by MFE. ($1 = 0.8559 euros)
Reuters
28-07-2025
- Business
- Reuters
Breakingviews - Berlusconis test investor faith in pan-European TV
LONDON, July 28 (Reuters Breakingviews) - The fight for control over 1.8-billion-euro German broadcaster ProSiebenSat 1 Media ( opens new tab is starting to look like a tug of war. With its newest offer, opens new tab on Monday, Italy's MFE-MediaForEurope (MFE) ( opens new tab looks to have gained the upper hand. The question now is whether the target's shareholders buy into the pan-European vision of the bidder's controlling Berlusconi clan, which means believing some chunky estimated cost cuts and revenue boosters. MFE, the 1.8-billion-euro TV group controlled by the family of former Italian Prime Minister Silvio Berlusconi, back in March made an initial lowball bid for the roughly 70% of ProSieben that it doesn't already own. The cash-and-shares offer was worth about 5.7 euros. Czech media investor PPF, which has a 15% stake in the German target, subsequently launched an all-cash counterbid of 7 euros per share, partly to resist the Berlusconis. The Italians' counter came on Monday, with an increase to the stock-based component of the offer. After accounting for a 6% selloff in the bidder's relevant share class, the new price is 7.93 euros per ProSieben share, with almost three-fifths in the form of cash and just over two-fifths equity, based on Breakingviews calculations. The German group's shares shot up to within a whisker of the offer. The bidder's chief executive, Pier Silvio Berlusconi, maintains that he's not seeking total control of ProSieben. Rather, he's seeking 'the flexibility to provide clear direction based on a shared vision'. That hasn't stopped MFE from modelling the savings on offer from a full combination, which it pegs at 419 million euros of additional operating profit by 2029. Just under half of this would come from revenue initiatives, such as positioning the enlarged group as a partner for big cross-border advertisers. The rest comes from slashing up to 3% of combined costs, for example by unifying advertising sales and technology operations. The returns could be nice, if that vision plays out. Add MFE's 419-million-euro estimate of the benefits to ProSieben's forecast 331 million euros of operating profit by 2029, using analyst forecasts gathered by Visible Alpha. After deducting tax at 30%, the total bottom-line boost to the bidder would be 525 million euros, or 16% of the purchase price after factoring in the target's net debt – a nice return by any standard. If investors believed those numbers, however, MFE's shares would be up rather than down. The consensus among bankers, analysts and investors has traditionally been that cross-border benefits are hard to come by in European television. Whether Spanish audiences will take a sudden interest in, say, German reality-TV programmes seems doubtful. With its beefed-up partly share-based bid, MFE is essentially putting that proposition before ProSieben shareholders. It's a bold bet on a potentially sketchy idea. Follow Jennifer Johnson on Bluesky, opens new tab and LinkedIn, opens new tab.
