Latest news with #SkyDeutschland
Yahoo
6 hours ago
- Business
- Yahoo
RTL to buy Sky Deutschland for €150mn in TV consolidation effort
RTL has agreed to buy Comcast's Sky Deutschland for €150 million as the media conglomerate seeks to stave off competition from US streaming platforms. On top of the €150mn upfront cost, the group may pay a further €377mn if RTL's share price rises above €41 apiece five years after the deal's close. RTL said that the acquisition, if approved by regulators, would allow it to become the third-biggest provider of streaming services in Germany after Netflix and Amazon Prime. The deal is expected to close next year. Comcast, Sky's parent firm since 2018, has been looking to sell Sky Deutschland for several years. The German subsidiary has never made a profit but it is expected to break even this year. The firm has notably been struggling as competition from streaming services heats up. However, Sky won a significant deal to exclusively show most Bundesliga football matches last year, through to the end of the 2028-29 season, boosting its attractiveness. 'The business is on track to achieve EBITDA break-even, reflecting the success of our turnaround plan. Combining the strength of our brand with RTL builds on that momentum and opens up even greater opportunities,' Dana Strong, Group CEO at Sky, said in a statement. Related Warner Bros. Discovery to split, dividing TV and streaming services Netflix and France's TF1 join forces as traditional TV struggles Thomas Rabe, CEO of RTL, noted: 'the synergies are estimated to be around €250mn per annum within three years after closing, creating significant shareholder value'. Combined, the groups will have around 11.5mn subscribers. Under the terms of the deal, RTL will have the right to use the Sky brand in Germany, Austria, Switzerland, Luxembourg, Liechtenstein and South Tyrol. RTL has been looking to secure new revenue streams through premium subscriptions, as it operates several television and radio stations that are free to air. The decision to buy Sky Deutschland is the biggest deal it has struck since it was formed in 2000. In 2023, RTL had its eyes on another consolidation project, bidding to acquire Dutch media conglomerate Talpa Network. Competition authorities said the merged group would be too dominant in the Netherlands. RTL then proposed to sell its Dutch subsidiary RTL Nederland to Belgium-based DPG Media, although regulators have yet to give the green light. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Telegraph
7 hours ago
- Business
- Telegraph
Sky retreats from Germany after losing billions
Sky has struck a cut-price deal to sell its German television business after losing billions of pounds on a troubled expansion spree. The media giant announced the sale of Sky Deutschland to Radio Télévision Luxembourg (RTL), Germany's biggest broadcaster, on Friday, in a deal that values the business at €150m (£128m). Comcast had been exploring the sale of Sky Deutschland for several years, which was bought from Rupert Murdoch's Fox for £2.9bn in 2014 but has never turned a profit. Cost-cutting The sale forms part of attempts by Sky-owner Comcast to radically scale back the British broadcaster, which is struggling amid increased competition from streamers. Comcast already slashed the value of Sky by $8.6bn (£6.3bn) in 2022 after acquiring the business for $31bn in 2018. Last year, it also reported a £1.2bn write-down on loans to its German and Italian operations, which were bought by Sky in a £7bn deal in 2014. Struggles in Europe have prompted further cost-cutting efforts at Sky, which recorded a pre-tax loss of £773m in 2023, according to its latest accounts. Plans to cut 2,000 customer service roles were announced in March. Meanwhile, RTL, which is part of media conglomerate Bertelsmann, could pay a further €377m (£321m) for Sky Deutschland based on its future performance. For example, extra payments will be triggered if RTL's share price exceeds €41. The combined business will have 11.5m customers. Thomas Rabe, the chief executive of RTL, said the deal would 'bring together two of the most powerful entertainment and sports brands in Europe and create a unique video proposition across free TV, pay-TV and streaming'. 'Germany has always been different' The German division, which operates in Germany, Austria, Switzerland and parts of Italy, holds the rights to broadcast the Bundesliga (the German football league) until 2029. Francois Godard, an analyst at Enders Analysis, said Sky had struggled in Germany with market share languishing around 10pc. He said earlier valuations of Sky Deutschland had been based on 'magic growth … of course that did not happen'. 'Germany has always been different from the UK. They never reached the kind of penetration they had in the UK.' Meanwhile, Sky's attempted overhaul was dealt a blow last year after bosses discovered an embarrassing advertising blunder. This stemmed from Sky uncovering miscalculations in its ad sales that meant its partners did not receive the correct revenues from their deals dating back years. Like other broadcasters, Sky has also been navigating a shift from linear TV to streaming, as customers switch from expensive satellite TV packages to on-demand streaming apps. Next year, it will face further competition as HBO launches its Max streaming service. In December, Sky secured a deal to keep HBO's shows, such as a new Harry Potter series, bundled with its service, but they will no longer be exclusive to the UK broadcaster.
Wall Street Journal
8 hours ago
- Business
- Wall Street Journal
Comcast Sells Sky Deutschland to RTL as Media Deals Pick Up in Europe
Comcast CMCSA 1.06%increase; green up pointing triangle is selling its Sky Deutschland unit to Bertelsmann's RTL RRTL 16.75%increase; green up pointing triangle Group for up to $617 million, as the wave of dealmaking that is reshaping the U.S. television sector crosses the pond. Media companies on both sides of the Atlantic are trying to adapt to the rise of streaming platforms, which has intensified competition for consumers' watching time and advertisers' spending. In response, legacy companies are shaking up their portfolios and pursuing a series of deals that promises to reshape the media landscape.
Euronews
9 hours ago
- Business
- Euronews
RTL to buy Sky Deutschland for €150mn in TV consolidation effort
RTL has agreed to buy Comcast's Sky Deutschland for €150 million as the media conglomerate seeks to stave off competition from US streaming platforms. On top of the €150mn upfront cost, the group may pay a further €377mn if RTL's share price rises above €41 apiece five years after the deal's close. RTL said that the acquisition, if approved by regulators, would allow it to become the third-biggest provider of streaming services in Germany after Netflix and Amazon Prime. The deal is expected to close next year. Comcast, Sky's parent firm since 2018, has been looking to sell Sky Deutschland for several years. The German subsidiary has never made a profit but it is expected to break even this year. The firm has notably been struggling as competition from streaming services heats up. However, Sky won a significant deal to exclusively show most Bundesliga football matches last year, through to the end of the 2028-29 season, boosting its attractiveness. 'The business is on track to achieve EBITDA break-even, reflecting the success of our turnaround plan. Combining the strength of our brand with RTL builds on that momentum and opens up even greater opportunities,' Dana Strong, Group CEO at Sky, said in a statement. Thomas Rabe, CEO of RTL, noted: 'the synergies are estimated to be around €250mn per annum within three years after closing, creating significant shareholder value'. Combined, the groups will have around 11.5mn subscribers. Under the terms of the deal, RTL will have the right to use the Sky brand in Germany, Austria, Switzerland, Luxembourg, Liechtenstein and South Tyrol. RTL has been looking to secure new revenue streams through premium subscriptions, as it operates several television and radio stations that are free to air. The decision to buy Sky Deutschland is the biggest deal it has struck since it was formed in 2000. In 2023, RTL had its eyes on another consolidation project, bidding to acquire Dutch media conglomerate Talpa Network. Competition authorities said the merged group would be too dominant in the Netherlands. RTL then proposed to sell its Dutch subsidiary RTL Nederland to Belgium-based DPG Media, although regulators have yet to give the green light.
Yahoo
10 hours ago
- Business
- Yahoo
RTL Group to buy Sky Deutschland
Sky Deutschland has been sold to multinational media conglomerate RTL Group for an initial €150m. The businesses are merging to create a brand with around 11.5 million paying subscribers. RTL had approached Sky Deutschland after it won the rights to show the majority of Bundesliga German football league matches. The Sky Deutschland entity serves Germany, Austria, and Switzerland with customers in Luxembourg, Liechtenstein and the South Tyrol province of Italy with programming that includes live sports, exclusive series, films, children's content, documentaries and shows. Money blog: Lenders cut mortgage rates - but good and bad news for buyers, landlords and renters RTL Group operates broadcast, streaming, content and digital businesses with interests in 60 television channels, seven streaming services and 37 radio stations. The group also has interests in radio stations in France, Germany, Spain and Luxembourg. RTL Deutschland owns 15 TV channels and more than 10 magazines. Under the deal, Sky's premium sports rights - including Bundesliga, Premier League and Formula 1 - will be merged with RTL's entertainment and news brands. RTL will also use the Sky brand. Sky executives expect Sky Deutschland to break even this year. The purchase is the largest transaction for the RTL Group since its inception in 2000. "It will bring together two of the most powerful entertainment and sports brands in Europe and create a unique video proposition across free TV, pay TV and streaming," RTL Group's chief executive Thomas Rabe said. "Together, RTL and Sky will be in an even stronger position to invest in people, content and technology in Germany and in Europe to compete with the global tech and streaming players." The deal is subject to regulatory approval, which the companies expect will conclude next year. In addition to the upfront €150m, Sky can trigger additional payment at any point within five years of the deal closing if RTL Group's share price exceeds €41. RTL Group shares currently cost €31.65. That payment is capped at €70 per share or €377m. The combined business could deliver €250m worth of savings a year on marketing, content and technology within three years, the businesses said. Sky News is owned by Sky, which is owned by Comcast, the US multinational media and entertainment business.
