ProSiebenSat.1 Boards Endorse MFE-MediaForEurope’s Enhanced Takeover Bid
In a significant development for European media consolidation, ProSiebenSat.1’s executive and supervisory boards have officially endorsed the takeover bid from MFE-MediaForEurope, the pan-European television group under Pier Silvio Berlusconi’s leadership.
Improved Offer Terms
The revised takeover offer includes:
- Cash payment of €4.48 ($4.90) per share
- Share swap of 1.3 MFE A-shares per ProSieben share
- Total package value of approximately €8.07 ($8.83) per share
- 24% premium over ProSiebenSat.1’s March 26 share price
Strategic Implications for European Broadcasting
MFE, which currently holds nearly 30% of ProSiebenSat.1, aims to create Europe’s third-largest commercial TV company through this acquisition. The merger would position MFE behind only RTL and ITV in the European broadcasting landscape.
Key Strategic Benefits
The consolidation strategy focuses on:
- Creating cross-border synergies between national TV giants
- Pooling advertising resources
- Sharing content and technology
- Competing more effectively with U.S. streaming platforms
Financial and Operational Considerations
The endorsement is backed by projected cost synergies of approximately €150 million ($174 million) annually on an EBIT basis, achievable within four to five years. However, the boards have noted potential risks, including regulatory challenges and execution hurdles.
Shifting Dynamics in European Media
This endorsement represents a notable shift in ProSiebenSat.1’s stance, following previous resistance to MFE’s integration efforts. The development could mark a turning point in European broadcasting consolidation, particularly in free-TV markets across major territories.
Important Note: ProSieben shareholders have until August 13 to respond to MFE’s offer, which surpasses the competing all-cash bid of €7 ($7.66) per share from Czech investment firm PPF IM.