CME has entered into an agreement to buy MediaPro Entertainment, one the leading producers and distributors and distributors of TV fiction in CEE, from Adrian Sarbu.
Under the terms of what is a complex deal believed by Merrill Lynch to be worth $97.6 million (€68.6 million), MediaPro Management and MediaPro BV will receive $10 million in cash and 2.2 million CME shares.
CME will also cover $35.6 million of debt and return 8.75% of businesses in MediaPro Management to Sarbu.
Sarbu, hitherto CME’s president and COO, will now become its CEO.
MediaPro Entertainment produces over 500 hours of TV fiction and feature films each year. Its businesses include MediaPro Pictures, the largest producer of local fiction in CEE and supplier of fiction to CME, MediaPro Studios and MediaPro Distribution.
CME now plans to integrate its existing fiction, reality and entertainment TV production units with MediaPro Entertainment, in which it already held a 8.75% stake.
A leading operator of commercial TV stations, it currently has a presence in seven CEE countries.