AT&T Sells Off Stake in CME

Central European Media Enterprises (CME), which has broadcast operations in Bulgaria, the Czech Republic, Romania, Slovakia and Slovenia, is being acquired by an affiliate of PPF Group, including AT&T’s shares, in a cash transaction valued at approximately $2.1 billion.

CME’s largest shareholder, AT&T, has agreed to vote in favor of the transaction. Under terms of the agreement, AT&T will receive some $1.1 billion in cash at close and will also be relieved of a $575 million debt guarantee. AT&T acquired its stake in CME with the acquisition of Time Warner, now WarnerMedia, in 2018.

PPF’s acquisition of CME is expected to be completed during the second quarter of 2020, subject to regulatory approvals and customary closing conditions.

John Billock, chairman of the CME Board of Directors, said, “The Special Committee of the Board, together with our advisors, conducted an extensive review of alternatives, which involved outreach to and engagement with a significant number of strategic and financial parties. This announcement today reaffirms our commitment to deliver value to all shareholders.”

Michael Del Nin and Christoph Mainusch, co-CEOs of CME, said, “Over the course of the last six years while transforming the business and delivering a continuous stretch of astonishing profitability growth, our primary focus has been on creating value for our owners. This transaction, which is the culmination of those efforts, is the right one for our shareholders and a satisfying conclusion to one of the most successful turnarounds of a leading media company in recent times. We are pleased that the PPF Group, with a strong track record as operators of businesses across many industries, shares our perspective on the importance of local content and its ability to attract large audiences to television.”