CME Acquires News Corp.’s Bulgarian Channels

HAMILTON: Central European Media Enterprises (CME) has reached a deal to acquire the Bulgarian free-to-air commercial broadcaster bTV from News Corporation, as well as two sister cable networks and a stake in a radio company, for $400 million.

The deal includes bTV, bTV Cinema, bTV Comedy and a 74-percent stake of Radio Company C.J. Subject to approval by the Bulgarian Commission for the Protection of Competition and other customary closing conditions, the deal is expected to be complete in the second quarter. News Corp has now completed its plan to exit its substantial Eastern European free-to-air broadcasting businesses.

“The acquisition of bTV is the next step in repositioning CME after the sale of our Ukrainian operations," said Adrian Sarbu, the president and CEO of CME. "We are now focused on building a highly profitable vertically integrated media company operating in the EU and EU accession countries. bTV greatly complements our portfolio of broadcasting assets. I am confident that we will be able to bring Bulgarian viewers an enhanced TV offer and deliver significant value for our shareholders.”

CME is also acquiring from Top Tone Holdings a 20-percent interest in its own Pro.BG business in Bulgaria. In return, Top Tone will receive a 6-percent interest in a newly created subsidiary that will hold the bTV and Pro.BG businesses, with the right to acquire an additional 4 percent interest for period of up to three years from closing.