Acquisition part of European giant’s ‘in-country combination’ strategy to compete with global streamers
RTL Group has completed its acquisition of Sky Deutschland, paying €68m (£59m) to US-based owner Comcast for the European pay-TV and streaming firm.
The Bertelsmann-owned giant revealed plans to buy the broadcaster last year and secured regulatory clearance in April, with the deal set to create a company with 12.3 million subscribers - more than Disney+ in Germany, but still behind Netflix and Prime Video.
The move is part of RTL’s attempts to step up its efforts to compete with global streaming rivals, with the Fremantle owner taking over Sky’s operations in Germany, Austria and Switzerland, including programming and sports rights.
RTL said the acquisition “underscores [its] strategic focus on in-country combinations in Europe to strengthen local media players and enhance their ability to compete with global streaming platforms.”
The deal brings together two of the biggest German streamers - RTL+ and Sky’s WOW - and is expected to generate €250m in annual synergies within three years. It combines Sky’s sports rights – including Bundesliga, DFB-Pokal, Premier League and Formula 1 – with RTL’s entertainment and news brands across RTL+, free-to-air and pay TV.
RTL Deutschland restructured its senior team after gaining regulatory approval for the deal, with Sky exec Barny Mills exiting and Stephan Schmitter overseeing a combined team that includes RTL Deutschland’s current chief content officer Inga Leschek.
RTL Group’s former chief exec Thomas Rabe left the company last month and is being replaced by Warner Bros Discovery’s Clément Schwebig, who was most recently president and managing director of the US studio in Western Europe and Africa.
The initial upfront payment of €68m is below the projected €150m touted earlier this year because of adjustments made to reflect working capital and debt. An additional payment will be made if RTL’s share price exceeds €36.26 in the next five years (not €41 as previously announced, because of a dividend payout after RTL sold its Netherlands operation).
The final amount will be determined by the share price with a cap of €70 per share, resulting in a maximum payment of €377m.
Sky Deutschland’s future has been in doubt for years after it moved from away from scripted originals such as Das Boot, following Comcast’s acquisition of the European pay TV operator in 2018.
The German operator has never made a profit but generated revenues of €2bn last year. It has also had to adjust to losing exclusive HBO content following Warner Bros Discovery’s launch of HBO Max in the country.
RTL Deutschland will remain headquartered in Cologne and Sky Deutschland in Munich.
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