Together, Axel Springer and ProSiebenSat.1 can become the largest media company in Europe.
German publisher Axel Springer and ProSiebenSat.1 media corporation are negotiating mergers. Negotiations are still at an early stage, but it is known that Axel Springer plans to retain control of the merged company.
ProSiebenSat.1 owns such large German channels as SAT.1 , ProSieben , Kabel Eins , SAT.1 Gold , ProSieben MAXX . Last year, the corporation's revenues amounted to 2.9 billion euros. ProSiebenSat.1 is one of the largest independent media corporations in Europe.
Since recently, Axel Springer has been rapidly expanding its influence in the Internet segment of the publishing market, although previously it was mainly engaged in the print media. In the third quarter of 2014, more than half of the company's revenues came from digital media. Thus, in the 2014 fiscal year, Axel Springer's revenue was more than 3 billion euros. The most famous projects of the company are the magazine Bild and the daily newspaper Die Welt .
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The merger was planned to be held ten years ago. The deal did not take place because of the ban of the anti-monopoly authorities of Germany. However, last year, companies were still able to prove that the ban was groundless.
To date, the capitalization of ProSiebenSat.1 has reached 9.7 billion euros. A decade ago, Alex Springer valued her at 4 billion euros. Alex Springer itself is now estimated at 4.7 billion euros. Since the capitalization of ProSiebenSat.1 is much larger, the corporation must also receive a larger number of votes in the merged company. Then the share of Frida Springer (owns 57% of Alex Springer) after the merger may decrease to 20%. Therefore, most likely, it will insist on merging in the form of a limited liability partnership in order to gain an authoritarian vote in the new company, writes The Wall Street Journal.
The capitalization of the combined company could reach 14.4 billion euros. This will allow it to become the largest media company in Europe. The merger will enable Axel Springer and ProSiebenSat.1 to use more channels to promote their products. In addition, they will be able to use their dominant position in the traditional media segment to fund growth in digital media.
ProSiebenSat.1 owns such large German channels as SAT.1 , ProSieben , Kabel Eins , SAT.1 Gold , ProSieben MAXX . Last year, the corporation's revenues amounted to 2.9 billion euros. ProSiebenSat.1 is one of the largest independent media corporations in Europe.
Since recently, Axel Springer has been rapidly expanding its influence in the Internet segment of the publishing market, although previously it was mainly engaged in the print media. In the third quarter of 2014, more than half of the company's revenues came from digital media. Thus, in the 2014 fiscal year, Axel Springer's revenue was more than 3 billion euros. The most famous projects of the company are the magazine Bild and the daily newspaper Die Welt .
')
The merger was planned to be held ten years ago. The deal did not take place because of the ban of the anti-monopoly authorities of Germany. However, last year, companies were still able to prove that the ban was groundless.
To date, the capitalization of ProSiebenSat.1 has reached 9.7 billion euros. A decade ago, Alex Springer valued her at 4 billion euros. Alex Springer itself is now estimated at 4.7 billion euros. Since the capitalization of ProSiebenSat.1 is much larger, the corporation must also receive a larger number of votes in the merged company. Then the share of Frida Springer (owns 57% of Alex Springer) after the merger may decrease to 20%. Therefore, most likely, it will insist on merging in the form of a limited liability partnership in order to gain an authoritarian vote in the new company, writes The Wall Street Journal.
The capitalization of the combined company could reach 14.4 billion euros. This will allow it to become the largest media company in Europe. The merger will enable Axel Springer and ProSiebenSat.1 to use more channels to promote their products. In addition, they will be able to use their dominant position in the traditional media segment to fund growth in digital media.
Source: https://habr.com/ru/post/292338/
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