RTL Group, the international commercial broadcasting giant, has agreed to acquire German pay-TV broadcaster Sky Deutschland for approximately €150 million ($175.6 million).
The businesses will merge to create a unified brand with around 11.5 million paying subscribers.
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Sky News reports that RTL approached Sky Deutschland after the pay-TV heavyweight retained rights to multiple packages of matches from German soccer’s top-tier Bundesliga late last year.
The broadcaster’s new deal for the league covers the next four seasons, through to 2028-29.
Under RTL’s acquisition, Sky's premium sports rights stable – which also includes the English Premier League and motor racing’s Formula 1 – will be merged with RTL's entertainment and news brands. RTL will also use the Sky brand.
The purchase represents the largest transaction for the RTL Group since its inception in 2000.
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By GlobalDataSky Deutschland operates primarily in Germany, Austria, and Switzerland but also has customers in Luxembourg, Liechtenstein, and the South Tyrol province of Italy.
Its programming includes live sports, exclusive series, films, children's content, documentaries, and shows.
The deal is subject to regulatory approval but is expected to close next year.
In addition to the upfront €150 million sum, Sky can trigger additional payment at any point within five years of the deal closing if RTL Group's share price exceeds €41 – RTL Group shares currently cost €31.65. That payment is capped at €70 per share or €377 million.
Thomas Rabe, RTL Group's chief executive, has said: “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.
“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.”
In 2021, RTL Group sold its RTL Belgium division to domestic media companies DPG Media and Groupe Rosse for €250 million.
