EU approves RTL's €150M Sky Deutschland deal, creating 12M subscriber service
RTL Group has received unconditional approval from the European Commission for its €150 million acquisition of Sky Deutschland, with the deal expected to close on June 1. The acquisition combines the RTL+ and Sky WOW streaming services to create a provider with over 12 million paying subscribers in Germany, Austria, and Switzerland. The combined company will integrate Sky’s sports rights, including the Bundesliga and Premier League, with RTL's entertainment and news brands.
Key Takeaways
- The combined RTL+ and WOW services will have over 12 million paying subscribers, surpassing Disney+ in Germany.
- RTL gains Sky's key sports rights, including the Bundesliga and Premier League, to integrate with its entertainment and news content.
- The deal includes a €150M upfront payment, with an additional performance-based payment tied to RTL's share price over the next five years.
- Despite generating €2bn in revenue last year, Sky Deutschland has operated without ever making a profit.
Why It Matters
This acquisition creates a scaled local competitor in the DACH region, a key part of RTL's strategy to challenge global streamers. By combining RTL's general entertainment with Sky's premium sports rights, the new entity aims to build a comprehensive offering to compete with the content breadth of Netflix and Prime Video. Although Sky Deutschland has been unprofitable, RTL is betting that scale and content consolidation are the path to profitability in a crowded market. The key metric to watch will be how successfully the company integrates the two services and whether subscriber growth can offset Sky's history of financial losses.
Read full article at broadcastnow.co.uk
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