MTG to sell FTV Prima stake

Scandinavia-based Modern Times Group (MTG) is selling its 50% stake in Czech broadcaster FTV Prima and is considering re-investing the funds in a German games company.

Jørgen Madsen Lindemann

Denemo Media, a joint venture between two Czech investment firms, has agreed to buy the shares in FTV Prima from MTG for €237.4m (US$254.5m).

The deal is subject to local regulatory approval and is expected to be completed in the first quarter of 2017, MTG said.

The Scandi company is considering using the proceeds to increase its ownership in Munich-based online games developer and publisher InnoGames from 21% to 51%.

This is a continuation of MTG’s strategy to shift itself from a traditional broadcaster into a digital video entertainment company and follows recent investments in companies such as Zoomin.TV and ESL.

MTG acquired 50% of FTV Prima Holding in 2005 for €87m in cash.

Denemo Media is a Czech JV between Denemo Invest, a subsidiary of Alphaduct, which is owned by Czech businessman Vladimir Komar, and GES Media Asset, which is part of GES Group, which already owns 50% of FTV Prima.

“Over the past 11 years, our local Czech partner and we have transformed the Czech media landscape by launching a wide variety of channels and services, and establishing Prima as the go-to brand for information and entertainment. We wish the team continued success with our local partner and the new investor,” said Jørgen Madsen Lindemann, MTG president and CEO.