The Italian media company Media for Europe (MFE) has apparently already contacted banks about a stronger commitment to Pro Sieben Sat 1. There are “non-binding discussions so that we are ready if the worst comes to the worst,” it said. It is also not unusual to have possible takeovers of banks calculated. MFE holds just under 30 percent of the shares in the Munich television company Pro Sieben Sat 1. If the 30 percent threshold is exceeded, MFE would have to submit an official takeover offer for the remaining shares under German stock corporation law. Pro Sieben Sat 1 is currently worth a total of around 1.7 billion euros on the stock exchange and also has high debts.
MFE is thus increasing the pressure in the dispute with the Germans. The company was formerly called Mediaset and is controlled by the family of former Italian prime minister and right-wing populist Silvio Berlusconi, who died last year. His son Pier Silvio Berlusconi is MFE CEO and is pushing for Pro Sieben Sat 1 to be broken up quickly. The Germans, in turn, are resisting this with all their might. The Italians would only “take hostile measures to gain control,” is the reasoning.
Apparently there are already three banks that want to help MFE
MFE circles say there is currently “no concrete takeover plan”. Bank of America, Deutsche Bank and Unicredit would support both a takeover offer for Pro-Sieben-Sat 1 shares and a possible necessary refinancing of debts, reports said Reuters. MFE wants the dating and e-commerce business to be spun off and sold as quickly as possible because the Italians are only interested in the television sector. Since they announced their plans, the price of Pro-Sieben-Sat 1 shares has risen by around 20 percent.
MFE emphasizes that European cooperation between television providers is important. “The European media industry is suffering from strong competition from the USA,” said MFE CFO Marco Giordani Financial Times. European consolidation is therefore crucial; we can only survive together. MFE joined Pro Sieben Sat 1 in 2019 and already has stations in Italy and Spain. The company is officially based in the Netherlands.
Meanwhile, Pro Sieben Sat 1 reports that the first quarter of 2024 was going well. Sales increased by six percent to 867 million euros. The recovery in TV advertising revenues contributed significantly to this. The operating profit of the entire company increased by a good third to 72 million euros. Outside of the core business, the online comparison portal Verivox and the online cosmetics retailer Flaconi developed very positively. Both companies are now to be sold, as Pro Sieben Sat 1 announced last week. The showdown at Pro Sieben Sat 1 is scheduled to take place at the general meeting at the end of April, after which the shareholders will vote on the break-up. A majority of 75 percent of the shareholders present is necessary.