RTL Group Announces Binding Agreement to Acquire Sky Deutschland
The RTL Group, a leading European media and entertainment company, has signed a binding agreement to acquire Sky Deutschland, a German-based pay-TV provider. The announcement was made on Friday by the company.
The transaction is subject to the approval of competition and media concentration authorities. Under the agreement, RTL Group will take over Sky’s operations in Germany, Austria and Switzerland, including customer relationships in Luxembourg, Liechtenstein and South Tyrol.
The purchase price is comprised of a cash payment of €150 million (excluding cash and debt) and an additional earn-out possibility for Comcast, Sky’s parent company, tied to the development of RTL Group’s stock price.
RTL Group has the option to pay the potential earn-out in RTL Group shares, in cash, or a combination of both. The potential earn-out is capped at €377 million if the RTL Group’s stock price reaches €70 per share. The estimated annual synergies from the transaction are €250 million, expected to be realized within three years.
Separately, RTL Group has entered into a brand licensing agreement, granting it the right to use the Sky brand in the DACH region, Luxembourg, Liechtenstein and South Tyrol. RTL Deutschland will also acquire the streaming brand “WOW”. The two companies will continue to operate independently until the receipt of regulatory approvals, expected in 2026.