Gazprom buys ProfMedia

November 27, 2013 12.11 Europe/London By Chris Dziadul

ProfMediajpegGazprom-Media has strengthened its position in the Russian TV market by acquiring the assets of ProfMedia for an undisclosed fee.

According to Kommersant, they include the TV channels TV-3, Pyatnitsa and 22, along with four radio stations and production company Central Partnership and may be followed by a further deal to buy the agency Alcazar, which sells advertising for NTV, TNT, TV Center and Zvezda.

ProfMedia was valued at $1.8 billion in 2007 but it is now believed to worth 2-2.5 times less.

The revenues generated by the sold assets amounted to $436 million, with EBITDA at $129 million.

Negotiations over the sale are understood to have taken only two weeks, with industry sources suggesting the amount paid by $700 million $800 million.