Scripps takes controlling stake in TVN
DetailsJoseph O'Halloran | 16 March 2015
Making a very clear statement about the robustness of the country's TV market, Scripps Networks Interactive has entered into an agreement to acquire a 52.7% interest in Poland's premier pay-TV provider TVN.
At present TVN boasts a 22% share of Polish viewing in 2014 and also claims to be the country's leading advertising sales house, last year securing a 33% share of the market in advertising revenue for TVN's own portfolio of channels, as well as selling advertising for a number of other commercial broadcasters.
Subject to regulatory approvals, Scripps will spend €584 million in cash to acquire the stake currently held by ITI and Canal+ Group and will also assume €840 million of debt. As required under Polish law, Scripps Networks Interactive will launch a mandatory public tender offer to further increase its ownership of the media firms which has a portfolio of free-to-air and pay-TV lifestyle and entertainment channels, including TVN, TVN 7, TVN Style, TTV, TVN Turbo as well as 24-hour news channel, TVN24, and business news channel TVN24 Biznes i Swiat.
TVNCommenting on the deal, Scripps Networks Interactive president and chief executive officer Kenneth W Lowe said: "This transaction is an important milestone in the on-going strategic development of our international business, and provides us with substantial further scale in Europe. Poland is a vibrant media market with significant growth potential ... the business will be a strong addition."
Added TVN president and chief executive officer Markus Tellenbach: "Ken Lowe and the team at Scripps Networks Interactive understand the importance of the Polish market, and the value of developing compelling content that connects with consumers. We are delighted to be joining the Scripps Networks Interactive family, and we're excited about developing and strengthening our business for many years to come."