RTL is to acquire Sky Deutschland to create a brand with around 11.5 million paying subscribers.
Sky Deutschland is available to viewers in Germany, Austria, and Switzerland as well as Luxembourg, Liechtenstein and the South Tyrol province of Italy.
RTL Group is initially paying €150 million to acquire the broadcaster, but Sky can trigger an additional payment at any point within five years of the deal closing if RTL Group’s share price exceeds €41. That payment is capped at €70 per share or €377 million.
The RTL Group’s board has approved the deal of directors and is subject to regulatory approvals.
In its announcement, RTL said that the new business will be well-positioned to “meet evolving consumer demands and compete with global streamers”. The deal will see Sky’s premium sports rights – including Bundesliga, DFB-Pokal, Premier League and Formula 1 – combined with RTL’s entertainment and news brands across RTL+, free-to-air and pay-TV.
Barny Mills, Sky Deutschland CEO, will continue to lead the Sky Deutschland business until the transaction is completed. Stephan Schmitter will remain in his current role as CEO of RTL Deutschland until the deal closes and will then lead the combined company. RTL Deutschland will remain headquartered in Cologne and Sky Deutschland in Munich.
Speaking about the deal, Thomas Rabe, CEO of RTL Group, said: “The combination of RTL and Sky…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. The synergies are estimated to be around €250 million per annum within three years after closing, creating significant shareholder value. 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.”
Dana Strong, Group CEO at Sky, aded: “Sky Deutschland has made significant progress over the past three years, delivering strong operational performance and reaching a record number of customers. 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. This deal provides a strong platform for long-term success, and ensures Sky continues to share in the growth of the combined business.”
Rumours that Comcast was looking to sell Sky Deutschland first emerged in 2022, with ProSiebenSat.1 said to be exploring a potential acquisition. Since then ProSieben has itself come under increasing pressure as to a potential sale with both Italy’s MediaForEurope and Czech investment group PPF interested in acquiring the broadcaster.
