European Commission greenlights RTL acquisition of Sky Deutschland

The European Commission has unconditionally approved the €150m (US$175m) acquisition of Sky Deutschland from Comcast by RTL Deutschland.

Thomas Rabe

RTL Group says it expects to close the transaction on June 1, bringing together 12.3 million paying subscribers across RTL+, Sky Deutschland and WOW.

Thomas Rabe, CEO of RTL Group, said: “We welcome the European Commission’s approval of the acquisition of Sky Deutschland. This is a milestone for RTL Group and will strengthen the competitiveness of European media companies, in line with the European Commission’s goal to reinforce industrial sovereignty.

“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. We now look forward to working with the Sky Deutschland teams to realise the full potential of the combined business.”

Dana Strong, CEO of Sky Group, added: “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.”

The deal combines Sky’s premium 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. It also unites streaming services RTL+ and WOW.

According to the agreement, RTL will fully acquire Sky’s businesses in Germany, Austria, Switzerland, including customer relationships in Luxembourg, Liechtenstein and South Tyrol, on a cash- and debt-free basis. The purchase price consists of €150m in cash and a variable consideration linked to RTL Group’s share price performance.

The variable consideration can be triggered by Comcast, Sky’s parent company, at any time within five years of the deal closing, provided that RTL Group’s share price exceeds €41. The consideration is capped at €70 per share or €377m. RTL Group has the right to settle the variable consideration in its own shares, cash or a combination of both.