German media giant RTL Group has signed an agreement to buy Comcast-owned pay-TV platform Sky Deutschland. The deal brings together two top media brands in the region, creating a business with roughly 11.5 million paying subscribers.
The joint businesses will combine “Sky’s premium sports rights – including Bundesliga, DFB-Pokal, Premier League and Formula 1 – with RTL’s leading entertainment and news brands across RTL+, free-to-air and pay TV.” The deal also “unites the fastest growing streaming offers in the German market, RTL+ and Wow,” the companies said in a joint statement.
The deal involves a €150 million ($176 million) upfront payment by RTL, plus a variable component of up to €377 million euros that can build up depending on RTL’s share price after it exceeds €41. Sky parent Comcast can trigger this part of the deal at any time within the next five years.
The transaction, which has been approved by the board of directors of RTL Group, is subject to regulatory approvals. The two businesses will continue to operate independently until regulatory approvals are obtained, which are expected in 2026, they said in the statement.
Sky Deutschland operates in Germany, Austria, and Switzerland.
“The combination of RTL and Sky is transformational for RTL Group. It will bring together two of the most powerful entertainment and sports brands in Europe and create a unique video proposition across free TV, pay TV and streaming,” said Thomas Rabe, CEO of RTL Group in a statement.
“Together, RTL and Sky will be in an even stronger position to invest in people, content and technology in Germany and in Europe to compete with the global tech and streaming players. I want to recognise the outstanding work of the Sky Deutschland team, whose strong performance over recent years has laid the foundation for this next phase,” he added.
Rabe told Reuters that RTL would not be involved in any further consolidation in the German market.
“The issue of a merger with ProSiebenSat.1 is now definitely off the table,” he said, referring to the prominent German media group that was seen by analysts as a possible consolidation partner for RTL.
Commented Dana Strong, Group CEO at Sky: “Sky Deutschland has made significant progress over the past three years, delivering strong operational performance and reaching a record number of customers.”
“The business is on track to achieve EBITDA break-even, reflecting the success of our turnaround plan. Combining the strength of our brand with RTL builds on that momentum and opens up even greater opportunities. This deal provides a strong platform for long-term success, and ensures Sky continues to share in the growth of the combined business.”