RTL takeover of Sky Deutschland
RTL has completed a deal with Comcast to purchase Sky Deutschland after an initial agreement was reached last year.
The sale covers Sky’s operations in Germany, Austria and Switzerland, as well as Luxembourg, Liechtenstein and South Tyrol, leaving Comcast in control of Sky in the key markets of the UK, Ireland and Italy.
The upfront purchase price is just €68m (£58.8m) but Comcast will receive up to €377m (£325.8m) extra at some point in the coming years, either in cash, shares in RTL or a combination of both.
In a statement, RTL said: “The transaction brings together two of the most recognisable media brands in the DACH region, creating a future-ready entertainment business with around 12.3 million paying subscribers.
“Viewers will benefit from expanded access to premium live sports, entertainment and news across RTL+, Sky, WOW and RTL’s free-to-air channels. The transaction is expected to generate €250 million in annual synergies within three years after closing, mostly cost synergies across all categories.
“The transaction underscores RTL Group’s strategic focus on in-country combinations in Europe to strengthen local media players and enhance their ability to compete with global streaming platforms.”
Comcast purchased Sky’s complete European business in late 2018 in a deal worth about £30 billion.
