Decision on the proposed directive remains pending with the Commission.

MFE Acquires Majority Stake in ProSiebenSat.1

In a significant move for the European media landscape, Media for Europe (MFE) has acquired a three-quarters majority of ProSiebenSat.1's shares. The acquisition, finalised after an extended acceptance period on September 1, grants MFE control over 75.61% of ProSiebenSat.1's share capital, representing 75.67% of the voting rights.

This acquisition paves the way for a profit and loss transfer agreement with ProSiebenSat.1, potentially marking a new chapter for both companies. Both ProSiebenSat.1 and RTL have been strengthening national formats for several years, a trend that MFE is likely to continue.

MFE, led by CEO Pier Silvio Berlusconi, plans to focus on continuity in the management of ProSiebenSat.1 for the time being. Four seats on the ProSiebenSat.1 supervisory board will be filled by representatives from the company Axel Springer SE. The Bavarian State Center for New Media, responsible for media supervision over ProSiebenSat.1, has expressed no legal concern about MFE's dominant influence.

However, changes in the ProSiebenSat.1 management board may depend on the company's economic performance. If CEO Bert Habets and Pier Silvio Berlusconi engage in politics, as they have not ruled out, the situation would need to be reassessed.

The acquisition comes as both companies grapple with a slowdown in the TV advertising business. Due to this decline, the revenues and results of private TV conglomerates, including ProSiebenSat.1, are declining. To counter this, MFE plans to produce and offer a more local offering tailored to the German audience for ProSiebenSat.1, including more news, entertainment shows, and TV series.

In a statement, Habets said they will jointly identify the most promising opportunities for deeper cooperation. The share price of ProSiebenSat.1 jumped by 7.7% to €8.21, while MFE's share price rose by 7% to €3.46, reflecting the market's optimism about the acquisition.

The local offering approach is already being implemented in Italy and Spain by MFE, suggesting a strategic move towards a more tailored and audience-focused approach to media production. The final decision is yet to be made by the Berlusconi family's conglomerate. If CEO Pier Silvio Berlusconi engages in politics, as he has not ruled out, the situation would need to be reassessed.

In summary, the acquisition of ProSiebenSat.1 by MFE marks a significant shift in the European media landscape. With a focus on local offerings and potential political involvement, the future of ProSiebenSat.1 and MFE remains to be seen.