German pay TV operator Sky Deutschland is to acquire 100% ownership of production company Plaza Media and a 25.1% interest in Sport1/Constantin Sport Marketing from Contstantin Sport Holding for €57.5 million excluding cash and debt.
Sky Deutschland already has an established relationship with Plaza Media, one of the country’s leading sports TV producers, which delivers production of football coverage for the pay TV operator.
The acquisition of a minority stake in Sport1/Constantin Sport Marketing gives Sky an interest in one of Plaza Media’s main partners, which provides marketing across TV and an online portal, Sport1.de, and operates an advertising sales business.
The deal is expected to close in the first half of next year, subject to regulatory approval.
Sky Deutschland is engaged in talks with its existing banking consortium to secure a new credit agreement guaranteed by its majority shareholder 21st Century Fox.
If it fails to secure the required credit, 21st Century Fox has committed to provide an unsecured shareholder loan.