Sky Deutschland has been acquired by multinational media conglomerate RTL Group for an initial €150m.
The two companies are coming together to form a brand with approximately 11.5 million paying subscribers.
RTL Group made the move to approach Sky Deutschland following its success in securing the rights to broadcast the majority of Bundesliga German football league matches.
Sky Deutschland caters to audiences in Germany, Austria, and Switzerland, as well as customers in Luxembourg, Liechtenstein, and the South Tyrol province of Italy. The programming offered includes live sports, exclusive series, films, children’s content, documentaries, and shows.
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RTL Group is involved in various media businesses such as broadcast, streaming, content, and digital services. With interests in 60 television channels, seven streaming platforms, and 37 radio stations, the group also has a presence in radio stations across France, Germany, Spain, and Luxembourg.
RTL Deutschland manages 15 TV channels and over 10 magazines.
As part of the agreement, Sky’s premium sports rights – including Bundesliga, Premier League, and Formula 1 – will be integrated with RTL’s entertainment and news offerings.
RTL will continue to leverage the Sky brand in its operations.
Sky executives anticipate that Sky Deutschland will break even financially this year.
This acquisition marks the largest transaction for the RTL Group since its establishment in 2000.
«This union will bring together two of the most influential entertainment and sports brands in Europe, creating a unique video offering across free TV, pay TV, and streaming platforms,» stated RTL Group’s CEO, Thomas Rabe.
«By joining forces, RTL and Sky will be better positioned to invest in talent, content, and technology in Germany and Europe, enabling them to compete with global tech and streaming giants.»
The completion of the deal is contingent on regulatory approval, which the companies anticipate will be finalized next year.
In addition to the initial €150m payment, Sky has the option to receive additional compensation within five years of the deal closing if RTL Group’s stock price surpasses €41. Currently, RTL Group shares are priced at €31.65.
The additional payment is capped at €70 per share or €377m.
The combined entity is expected to achieve annual savings of €250m in marketing, content, and technology within three years, according to the businesses.
Sky News is a subsidiary of Sky, which is owned by Comcast, a leading US multinational media and entertainment company.