German broadcast giant ProSiebenSat.1 Media is sailing ever closer to the whirlpool engulfing media empire Kirch Gruppe.
Despite its best efforts to ride out the insolvency filing of its majority owner KirchMedia [Kirch Gruppe’s flagship rights unit], ProSieben saw its share value plummet 20% earlier this week.
The stock plunge followed the broadcaster’s announcement that it would shelve the conversion of its preferred shares into common stock, previously an agenda item for its shareholder meeting on July 9.
According to ProSieben, KirchMedia could not currently approve the conversion as such a move could affect the insolvent firm’s creditors and investors.
The plan has been put on hold until KirchMedia’s shareholder structure has been finalised.
Data sourced from: Handelsblatt (Germany); additional content by WARC staff