MFE-MediaForEurope, the TV group controlled by Italy’s Berlusconi family, has launched a takeover bid for German broadcaster ProSiebensat.1 as part of its stated ambition to build a pan-European broadcaster that can compete with U.S. streaming giants such as Netflix.
MFE, which is headed by Pier Silvio Berlusconi — who is the son of the late former Italian Prime Minister and TV tycoon Silvio Berlusconi — and runs TV operations in Italy and Spain, has long been building a nearly 30% stake in ProSieben and plotting a ProSiebensat.1 buyout as part of its plan to create a pan-European advertising-funded network.
MFE was formed in 2021 when Berlusconi’s Mediaset moved its legal headquarters to the Netherlands, changed its shareholding structure, and rebranded as MediaForEurope.
Prosieben, which is Europe’s second-largest TV group in terms of TV home penetration, operates free-to-air and pay-TV channels in Germany, Austria and Switzerland.
“It is time to switch gear,” Pier Silvio Berlusconi said in a statement on Wednesday. “We believe that ProSiebenSat.1 needs a strong shareholder that can provide expertise and experience in the industry, making an active contribution to its growth journey,” he added.
Berlusconi in the statement went on to note that “The aim is to create a cross-media, cross-national pan-European group that naturally acts as an alternative to the digital giants and succeeds in the ambitious goal of being able to compete and grow.”
In the statement MFE said it plans to offer the average price of ProSieben shares over the past three months, which is the minimum price level allowed under German takeover law. The share value of the MFE offer is expected to be roughly €5.7 ($6) per share against a closing price of €6.5 ($7) on Wednesday after the price of ProSieben rose following news that the takeover bid was imminent.
MFE said it already has a binding agreement “with a current shareholder” who has committed to irrevocably adhere to the offer and therefore it “will in any case hold more than 30% of Prosieben’s share capital at the end of the offer.”
Though Mediaset has long held a controlling ProSieben stake, the German giant’s top management has so far appeared to oppose Piersilvio Berlusconi’s proposals for collaboration. Analysts say that while there have clearly been cost cutting benefits for MFE in delisting its Spanish unit Mediaset Espana and combining MFE’s Italian and Spanish linear TV units, synergies with ProSieben are more complex.
