Greece’s Alter Ego Media splits broadcaster Mega from content business

Mega’s Maestro in Blue was the first Greek series picked up for global distribution by Netflix

Publicly listed Greek media group Alter Ego Media is separating the operation of free-to-air broadcaster Mega Channel from its content development, production and rights exploitation activities, creating two wholly owned subsidiaries.

The Alter Ego board approved draft demerger agreements earlier this month, covering the spin-off of two business units. Mega Broadcasting will take over the Mega television station – best known for dramas such as The Island and Maestro in Blue – and the group’s other linear and on-demand audiovisual media services.

Alter Ego Studios, meanwhile, will develop and produce original content and commercially exploit Mega’s content library, including all additions to date, with a remit to distribute content across platforms, stations and markets in Greece and internationally.

In the group’s regulated stock exchange announcement, Alter Ego Media said the library covers content used by the group’s own services, including Mega, Mega Play and Megatv.com, and will be further exploited through distribution in Greece and abroad. Alter Ego’s international sales arm is Mega Distributions.

Alter Ego – which acquired Greek commercial broadcaster Mega Channel in 2019 for €34m (US$39m) – said the new structure gives each business more operational autonomy and flexibility, improves financial transparency and allows more efficient use of resources. It also casts content and the rights to exploit it as strategic assets that can generate new, recurring revenue.

It described the move as part of a strategy to become an integrated media and entertainment group, and it is likely aimed at producing for platforms outside the Mega family and beyond Greece’s borders. Maestro in Blue, for example, made history as the first Greek series picked up for global distribution by Netflix.

The Athens-based company said the demerger is not expected to affect its financial and asset structure, as both subsidiaries are fully consolidated in its results. It will receive all of the new shares issued by each subsidiary and remain their sole shareholder. The demerger was approved by Greek auditor PKF Euroauditing.

Mega’s broadcast licence, issued by Greece’s National Council for Radio and Television, will transfer to Mega Broadcasting, subject to the regulator being notified and any necessary approvals being obtained. The demerger is subject to corporate, regulatory and other approvals.