RTL Group to acquire Sky Deutschland from Comcast for initial $175m
Germany’s RTL Group is to acquire local pay TV broadcaster Sky Deutschland from its American owner Comcast for an upfront purchase price of €150m (US$175m).
RTL said this morning the transaction will bring together “two of the most recognisable media brands in the DACH region, creating a future-ready entertainment business with around 11.5 million paying subscribers” across RTL+, Sky and WOW.
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.
Barny Mills, Sky Deutschland’s CEO, will continue to lead the business until the transaction is completed. Stephan Schmitter will stay in his current role as CEO of RTL Deutschland until closing and then lead the combined company. RTL will remain headquartered in Cologne and Sky in Munich.
Already approved by the board of directors at RTL, the deal is subject to regulatory approval, which is expected to be received in 2026.
Thomas Rabe, CEO of RTL Group, said: “The combination of RTL and Sky is transformational for RTL Group. It will bring together two of the most powerful entertainment and sports brands in Europe and create a unique video proposition across free TV, pay TV and streaming. It will boost our streaming business, with a total of around 11.5 million paying subscribers, further diversify our revenue streams and make us even more attractive for creative talent, rights holders and business partners.
“The synergies are estimated to be around €250m per annum within three years after closing, creating significant shareholder value. Together, RTL and Sky will be in an even stronger position to invest in people, content and technology in Germany and in Europe to compete with the global tech and streaming players.”
Dana Strong, group CEO at Sky, added: “Sky Deutschland has made significant progress over the past three years, delivering strong operational performance and reaching a record number of customers. The business is on track to achieve EBITDA break-even, reflecting the success of our turnaround plan. Combining the strength of our brand with RTL builds on that momentum and opens up even greater opportunities. This deal provides a strong platform for long-term success and ensures Sky continues to share in the growth of the combined business.”
This morning’s announcement was quickly followed by another major piece of M&A news involving RTL Group, which confirmed the Dutch Authority for Consumers and Markets (ACM) has cleared the sale of RTL Nederland to Belgium’s DPG Media.
The protracted deal, which was announced in 2023, was initially hoped to have been completed last year, but faced various regulatory hurdles. RTL Group expects to close the €1.1bn (US$1.3bn) transaction next Tuesday (July 1).
As part of the sale, RTL Group and DPG Media will enter in a strategic partnership, which includes RTL Group getting first-look rights for all new programmes developed by RTL Nederland.
Based on a separate trademark license agreement, DPG Media will continue to use the RTL brand in the Netherlands at least until December 2034. J.P. Morgan acted as exclusive financial advisor to RTL Group on the deal.
Rabe said: “After a long review by the authority, the sale provides RTL Nederland and its stakeholders with clarity and the best path forward.”
