RTL Group to Acquire Sky Deutschland

RTL Group has clinched a deal with Comcast to acquire Sky Deutschland, with CEO Thomas Rabe calling it a “transformational” move for the European media group.

RTL Group will acquire Sky’s businesses in Germany, Austria and Switzerland, including customer relationships in Luxembourg, Liechtenstein and South Tyrol, on a cash-free and debt-free basis, for €150 million in cash and a variable consideration linked to RTL Group’s share price performance. The variable consideration can be triggered by Comcast at any time within five years after closing.

“The combination of RTL and Sky is transformational for RTL Group,” Rabe said. “It will bring together two of the most powerful entertainment and sports brands in Europe and create a unique video proposition across free TV, pay TV and streaming. It will boost our streaming business, with a total of around 11.5 million paying subscribers, further diversify our revenue streams and make us even more attractive for creative talent, rights holders and business partners. The synergies are estimated to be around €250 million per annum within three years after closing, creating significant shareholder value. Together, RTL and Sky will be in an even stronger position to invest in people, content and technology in Germany and in Europe to compete with the global tech and streaming players. I want to recognize the outstanding work of the Sky Deutschland team, whose strong performance over recent years has laid the foundation for this next phase.”

Dana Strong, group CEO at Sky, commented, “Sky Deutschland has made significant progress over the past three years, delivering strong operational performance and reaching a record number of customers. The business is on track to achieve EBITDA break-even, reflecting the success of our turnaround plan. Combining the strength of our brand with RTL builds on that momentum and opens up even greater opportunities. This deal provides a strong platform for long-term success and ensures Sky continues to share in the growth of the combined business.”

RTL will have the right to use the Sky brand in the DACH region and is taking control of the streaming brand “WOW” as part of the transaction. Following the deal, Sky Deutschland CEO Barny Mills will continue to lead the business.

Stephan Schmitter will stay in his current role as CEO of RTL Deutschland until closing of the transaction and then lead the combined company.