Scripps Networks Interactive has entered into an agreement to acquire a 52.7 per cent interest in Poland’s multi-platform media company, TVN. Scripps, developer of lifestyle content for television, internet and mobile platforms, has agreed to acquire the stake from ITI and Canal+ Group for an all-cash consideration of €584 million, as well as €840 million of debt.
Following completion, Scripps Networks Interactive will launch a mandatory public tender offer to further increase its ownership interest in TVN, as required under Polish law.
TVN’s portfolio includes lifestyle and entertainment channels, 24-hour news outlet TVN24, and business news channel TVN24 Biznes i Swiat. Last year TVN secured a market-leading 22 per cent share of Polish viewing. Advertising sales house TVN Media secured a 33 per cent share of the market in advertising revenue for TVN’s own portfolio of channels, as well as selling advertising for a number of other commercial broadcasters in Poland.
“This transaction is an important milestone in the ongoing strategic development of our international business, and provides us with substantial further scale in Europe,” said Kenneth W Lowe (pictured), chairman, president and chief executive officer of Scripps Networks Interactive.
The acquisition is the latest move in Scripps Networks Interactive’s expansion into Europe. In 2011, the company completed a joint-venture partnership with BBC Worldwide in the UK for the UKTV portfolio of ten entertainment and lifestyle channels. Scripps Networks Interactive distributes seven lifestyle brands, reaching more than 220 million cumulative subscribers in nearly 180 countries and territories across Europe, Middle East, Africa, Asia Pacific, Latin America and the Caribbean.
“Poland is a vibrant media market with significant growth potential. TVN has an incredible portfolio of channels and services, and has delivered consistently strong creative and financial performance under the leadership of Markus Tellenbach,” said Lowe. “The business will be a strong addition to Scripps Networks Interactive, and we’re looking forward to working with the whole TVN team to achieve our significant ambitions in the region together.”
“This is a credit to the hard work and commitment of every single employee of TVN in building one of the most successful media companies in Poland,” added Markus Tellenbach, TVN SA president and chief executive officer. “Ken Lowe and the team at Scripps Networks Interactive understand the importance of the Polish market, and the value of developing compelling content that connects with consumers. We are delighted to be joining the Scripps Networks Interactive family, and we’re excited about developing and strengthening our business for many years to come.”