MOSCOW: Russian TV company CTC Media is to acquire the 40% of stock it doesn't already own in the local DTV Group network, currently co-owned with Sweden's Modern Times Group.

The roubles on the table equate to $395 million (€254.9m; £195.4m) and the deal is set to close before the end of this year's second quarter.

CTC chief executive Alexander Rodnyansky was in high-five mode: "DTV is a well-run, profitable and established network that will increase our exposure to the fast-growing Russian TV advertising market," he enthused. 

Trans-Russian TV ad sales leapt 34% in 2007 to $4.3 billion and are forecast to grow 28% this year, according to Russia's largest  TV advertising agency, Video International Group.

Renaissance Capital analysts, however, were notably less bullish. "To justify the purchase price," opined the party-poopers in an investment note, "CTC will have to deliver a material improvement in DTV's financial performance."

Data sourced from Moscow Times; additional content by WARC staff