RTL Group Buy Sky Deutschland, creating a giant in Dach

11.5 million payment subscribers will form the business of Rtl Group After the purchase of Sky Germany (Germany, Austria and Switzerland), an operation encrypted at 150 million euros that plans to yield 250 million euros annually in synergies.

The operation will allow RTL possess the premium sports rights of Sky, like the Bundesliga, DFB-Pokal, Premier League and Formula 1, as well as integrate the streaming services of the company. As has moved Thomas Rabe, CEO of RTL Group, the union of both brands will form one of the entertainment companies and “more powerful” sports, creating a “unique on open television, payment and streaming television” proposal.

According to the agreement, RTL Group will acquire in full the businesses of Sky In Germany, Austria and Switzerland, including customer relations in Luxembourg, Liechtenstein and Tyrol from the south, without cash or debts. The purchase price consists of 150 million euros in cash and a variable consideration linked to the evolution of the price of RTL Group actions. Variable consideration can be activated by Comcast, Sky matrix, at any time within five years at the close, provided that the price of RTL Group exceeds 41 euros. The operation is expected to generate 250 million euros In annual synergies within a period of three years, mainly cost synergies in all categories.

By virtue of another brand license agreement, RTL will have the right to use the Sky brand in the Dach region (Germany, Austria and Switzerland), Luxembourg, Liechtenstein and Tirol del Sur. In addition, RTL will acquire the streaming brand WOW of Sky Deutschland as part of the transaction. Dana Strong, CEO of the Sky Group, concludes the agreement: "This agreement provides a solid platform for long -term success and guarantees that Sky continues to share the growth of the combined business."

The two businesses will continue to work independent form until regulatory authorizations are obtained, expected by 2026.