Reorganization Announced for ProSiebenSat.1

MUNICH, November 14: In a
move to cut costs, ProSiebenSat.1 Media is consolidating its Sat.1, ProSieben
and kabel eins channels in its Munich headquarters, with N24 to remain in
Berlin.

By June 2009, the three
German general-interest stations will be located within one central Munich
headquarters. Sat.1 and all support functions will be relocated from Berlin.
The plan affects a total of 350 employees. N24 will remain in Berlin, as will
the central editorial department of Sat.1. Dr. Torsten Rossmann, as head of the
management at N24, will have overall responsibility for both units at the
Berlin location, which will house about 450 employees. On the sales front,
plans call for combining SevenOne Media and SevenOne Interactive in a new
structure.

Andreas Bartl, the
executive board member for German free TV at ProSiebenSat.1 Media, stated:
"Having Sat.1, ProSieben and kabel eins all together in
Munich—that's the most important decision we've ever made in the German
market. We now have the chance to provide the best possible programming for
each station jointly. The daily exchange of ideas, the networked use of our
programming resources, the boost in team spirit, and our shared vision will
allow us to fully realize the immense potential of this family of
stations."

The restructure will
result in a loss of 225 jobs across all departments—reflecting in about 3
percent of the company's 6,000 employees, or about 7 percent of the roughly
3,000 who work for ProSiebenSat.1 in Germany.

Guillaume de Posch, the CEO of ProSiebenSat.1 Media, said in
announcing the reorganization: "We are putting all our operations in Germany
on a sounder footing. The competitiveness of our German free-TV stations is the
foundation for our sustained success in the market. Sat.1, ProSieben and kabel
eins will work together in Munich…We are making a major effort to cushion the
impact of these changes on our employees. Every Berlin employee affected will
get a job offer in Munich or an appropriate severance package. We hope that
many of our staff will make the move to Munich."

—By Mansha Daswani