April 24 – The European Commission has waved through RTL Group’s acquisition of Sky Deutschland, clearing the path for one of the biggest media consolidations the continent has seen in years.
The deal completes on June 1 and is for an intial $150 million in cash plus a variable component of up to €377 million tied to RTL’s share price performance.
The EC said the deal would “not significantly reduce competition,” citing pressure from global streaming platforms as the defining force in the European market.
Teresa Ribera, the EC’s Executive Vice-President for Clean, Just and Competitive Transition, said: “The European audiovisual markets are undergoing significant changes. By combining their capabilities, RTL and Sky DACH will be better equipped to compete in this market, which is rapidly changing. The transaction will allow well-established European media groups to consolidate their position at a time when the industry is transforming, and they are facing increasing pressure from global streaming platforms.”
The combined business will serve around 12.3 million paying subscribers across RTL+, Sky’s platforms, and WOW, Sky’s streaming service. €250 million in annual synergies are projected within three years. The deal sees US broadcast giant Comcast, Sky’s US parent, walk away from the DACH (Germany (D), Austria (A), and Switzerland (CH) region entirely.
Bundesliga, DFB Cup, Premier League and Formula 1 will now sit under the same roof as RTL’s free-to-air news and entertainment brands. Stephan Schmitter, who takes over the combined group, will run it out of Cologne and Munich.
“The approval is a milestone for RTL Group and will strengthen the competitiveness of European media companies,” said Thomas Rabe, CEO of RTL Group. “Combining RTL and Sky Deutschland will enhance our ability to invest in content, technology, and talent.”
Contact the writer of this story at [email protected]