1+1 Media has entered into an agreement to buy the DTH and internet businesses of Viasat Ukraine from Modern Times Group (MTG).
Although no fee has been disclosed, Broadband TV News, quoting industry sources, reported earlier this week that it could be in the region of $15 million to $20 million.
In a statement, 1+1 says that the main reasons for entering into the agreement were the strong market position of Viasat Ukraine in the DTH sector, its technological flexibility and presence in the pay-TV market.
Commenting on the agreement, Alexander Tkachenko, general director of 1 + 1 Media, said: “Pay-TV service are one of the main sources of income of TV companies worldwide. Unfortunately, due to the imperfection of our laws, including the law on universal programme distribution services, Ukrainian TV channels suffer significant losses on an annual basis. We believe in a strong and steady pay-TV market in Ukraine, which will serve as a driving factor for the development of the media against the background of the falling advertising market. Now our task is to develop a base of followers for Viasat and provide quality content and services. But this is impossible without a purposeful fight against piracy, which remains one of our priorities”.
The acquisition of Viasat Ukraine, which is believed to have around 150,000 customers, will be completed after it receives the approval of the Antimonopoly Committee.
