Entertainment <\/p>\n
\n\tRTL<\/a> has closed its deal to acquire Sky Deutschland<\/a> from Comcast<\/a>.<\/p>\n \n\tThe deal completed this morning, bringing together two of central Europe\u2019s big players as entertainment businesses seek consolidation to reach scale and compete against the tech giants.<\/p>\n \n\tThe deal \u201cunderscores RTL Group\u2019s strategic focus on in-country combinations in Europe to strengthen local media players and enhance their ability to compete with global streaming platforms,\u201d the Luxembourg-based RTL said this morning in a statement.<\/p>\n \n\tBertelsmann-owned RTL now owns Sky\u2019s operations in Germany, Austria and Switzerland, including customers in Luxembourg, Liechtenstein and South Tyrol. The Sky business has about 12.3 million paying subscribers in total, and its purchase marks RTL\u2019s biggest transaction since launching in 2000.<\/p>\n \n\tThe upfront purchase price is not the previously-announced \u20ac150M ($174.8M)<\/a>, but \u20ac68M \u201creflecting customary net working capital and debt-like item adjustments\u201d that are \u201cconsistent with the cash-free and debt-free basis of the transaction,\u201d RTL announced today. The \u20ac68M is subject to customary post-closing adjustments, meaning that it is not necessarily the final amount.<\/p>\n \n\tThe deal also includes a variable consideration capped at \u20ac377M that Comcast can trigger at any time in the next five years provided RTL\u2019s share price exceeds \u20ac36.26. This is lower than the previously stated \u20ac41, but reflects value of \u20ac4.74 related to the sale of RTL Nederland to DPG Media<\/a>. RTL can settle the consideration in shares, cash or a combination of both, meaning Comcast could become an RTL shareholder in the future.<\/p>\n \n\tRTL expects the Sky deal to achieve \u20ac250M in annual synergies within three years. The company said this will be made \u201cacross all categories.\u201d<\/p>\n \n\tComcast had owned Sky Deutschland since late 2018 when it bought Sky\u2019s wider European business in a deal worth around $40B.<\/p>\n<\/div>\n\n\t\t\tWatch on Deadline\t\t<\/h3>\n<\/p><\/div>\n