Liberty Media Group of the US is to purchase six regional cable TV companies in Germany from Deutsche Telekom for around E5.5 billion ($4.7bn).
The US media company originally led a consortium to buy 55% stakes in each TV network for around $2.5bn, leaving DT as a minority shareholder [WAMN: 23-Feb-01].
However, following a raft of regulatory and financial obstacles, the duo have deemed it more sensible for Liberty to buy the TV operators outright and without partners. The new owner could then at a later stage sell minority stakes to others, such as American financier Gary Klesch who was involved in the initial deal.
A press conference has been scheduled for today, though details are not due until the finished deal is signed, probably in July.
The purchase gives Liberty a foothold in the German TV market – the world’s second largest after the US.
News source: Wall Street Journal