MediaForEurope (MFE) has called for ProSiebenSat to make “radical choices” following the German broadcaster’s quarterly results, according to a report in the Financial Times (FT).
Founded by former Italian Prime Minister Silvio Berlusconi, MFE holds a 29.9 per cent stake in ProSieben, just below the threshold for making a mandatory takeover offer as required by German law.
Still owned by the Berlusconi family, MFE has previously denied it was planning a bid, but comments made by its CFO, Marco Giordani, have further fuelled speculation. “The current economic situation of the advertising market in Germany increases the sense of urgency,” he said, adding, “We therefore ask the supervisory board and the executive board to act faster, accelerating change and efficiency measures also through radical choices, without further delays.”
Both companies have declined to comment on the speculation. MFE is reportedly becoming increasingly impatient with the German company, with concerns over what it sees as a failure of chief executive Bert Habets to enact his previously proposed strategy.
MFE has seen its share price fall by around 90 per cent from its 2015 peak, with falling advertising revenues and competition from streaming cited as reasons. Announcing its third quarter revenues, ProSieben admitted private consumption had “not developed as positively as we expected.” At €882 million, revenues were roughly flat across the quarter, while adjusted earnings before interest, tax, depreciation and amortisation fell 6 per cent to €104 million. Earnings for the first nine months were said to align with expectations. According to the FT, the company said it “continues to pursue active portfolio management” and it “is reviewing the disposal of non-strategic investments.”
Acquiring ProSieben would provide MFE with an entry into the German-speaking market, alongside its channels in Italy and Spain. The creation of a pan-European group is an ambition of chief executive, Pier Silvio Berlusconi.
