Acquisition will create German streamer with 12m subscribers, with €250m synergy savings expected
RTL Group’s €150m (£128m) acquisition of Sky Deutschland has been cleared by European regulators.
The Bertelsmann-owned giant revealed plans to buy the broadcaster last year and now expects the deal to wrap on 1 June, following unconditional approval from the European Commission.
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.
The deal brings together two of the biggest German streamers - RTL+ and Sky’s WOW - to create a player with more than 12 million paying subscribers.
That puts it ahead of streaming rival Disney+ in Germany, but still behind Netflix and Prime Video.
The agreement 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.
Alongside the €150m upfront cost, an additional payment will be made if RTL’s share price exceeds €41 in the five years after the deal formally closes.
The final payment will be determined by the share price, with a cap of €70 per share, resulting in a maximum payment of €377m.
Sky Deutschland chief exec Barny Mills will continue to lead the business until the transaction is completed, with RTL Deutschland chief exec Stephan Schmitter then leading the combined company. RTL will retain the use of the Sky brand in the region.
Sky Deutschland’s future had been in doubt in recent 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.
The deal’s approval comes shortly ahead of the exit of RTL Group chief exec Thomas Rabe, who will leave in May to be 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.
Rabe described the EC’s approval as “a milestone” for RTL Group, adding that the deal “will strengthen the competitiveness of European media companies, in line with the European Commission’s goal to reinforce industrial sovereignty.”
He added: “Combining RTL and Sky Deutschland will enhance our ability to invest in content, technology and talent in Germany and across Europe. RTL Group believes that in-country combinations are necessary to compete with global platforms in the long term. The acquisition of Sky Deutschland is a major first step in this direction.”
Dana Strong, chief exec of Comcast-owned Sky Group, said: “We welcome the European Commission’s approval, which marks an important step in this transaction. Sky Deutschland has made significant progress over the past three years, delivering strong operational performance and reaching a record number of customers.
“Building on that momentum, the combination with RTL creates new opportunities to accelerate growth and strengthen the business for the long term. I would like to thank Barny Mills and the entire Sky Deutschland team for their outstanding work.”
Schmitter said the combined group would offer “an innovative and compelling local proposition across all channels – from independent news to premium entertainment and live sports.”
The deal is not the first time Rabe has attempted to expand RTL’s broadcast operations, following an unsuccessful attempted merger with M6 in France in 2024.
RTL Deutschland will remain headquartered in Cologne and Sky Deutschland in Munich.
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