Modern Times Group AB, Scandinavia's largest private broadcaster, will extend its Eastern European reach through the €620 million ($968 million) cash purchase of Nova Televisia Bulgaria from Greece's Antenna Group SA.
The deal, announced Thursday, is the biggest ever for 11-year-old Modern Times, which owns more than 50 TV channels in 24 countries, including Russia's fourth-largest
network through its 40% holding in Moscow-based CTC Media Inc. Nova is the Eastern European country's second-largest free-to-air TV broadcaster and broadcaster of "Who Wants to be a Millionaire," Bulgaria's top-rated game show, and U.S. exports "Big Brother," "CSI" and "Ugly Betty."
In a statement, Modern Times CEO Hans-Holger Albrecht said the purchase "strengthens our position in Europe's fastest-growing and most attractive broadcasting markets," but it seems investors may not be convinced. The company's shares in Stockholm were down 11.4% at 44.50 Swedish kronor ($7.35), posting their biggest decline in six years. In a note to investors, analyst Stefan Nelson at SEB Enskilda cautioned that the deal appears "very pricey" despite its strategic logic, and downgraded the stock to "hold" from "buy."
Earlier this year, Modern Times sold Russia's DTV Group for about $395 million to CTC Media. At that time, Modern Times executives said the company was hunting for other investment opportunities, both in Central and Eastern Europe as well as its home Scandinavian market. -
Renee Cordes
Join Corporate Dealmaker's LinkedIn forum
Juergen Lasowski
And the winners are...
