Czech Media Invest (CMI) has acquired a 4.07 per cent share in the second-largest European radio and television group, ProSiebenSat.1 Media SE.
This is the first step in a new strategy formulated by CMI which consists of purchasing minority shareholdings in European media companies in which CMI sees an attractive investment potential.
“This investment is a result of the mandate from our shareholders to ensure further growth within the European media landscape,” said Branislav Miškovič, member of the board of directors and financial director of the CMI group. “We expect ProSieben to be both a long-term and strategic investment within our media portfolio. We are convinced that strong linear European television stations which are able to swiftly react to market development have good economic potential also in the long-run and we do not share the scepticism held by the majority of the market as seen through the decline in the valuations of several European television groups.”
CMI’s move also includes an element of diversification which follows more significant investments in news publishing, radio stations and related digital assets. The group is also expanding in the field of linear nationwide television, which together with digital is a dominant format on the advertising market.
“What we specifically appreciate about ProSieben, other than its powerful brand and strong position on the large German market, is its ability to generate solid operational cash flows supported by management’s commitment towards discipline over operational costs and in the domain of M&A,” continued Mr Miškovič. “We appreciate the growing emphasis on local content production and also on the development of new digital means for TV broadcasting. As regards to e-commerce assets, while these are not necessarily essential for the business of linear televisions, ProSieben is a case in point who succeeded to create significant value from this pillar, which the company will benefit from over the coming years.”