Czech Media Invest (CMI) has acquired a stake of approximately 4.07% in ProSiebenSat.1 Media SE through purchases on public markets.
According to the company, this is the first step in a new strategy formulated by shareholders and management to buy minority shares in European media companies, including listed companies, where CMI sees attractive investment potential. It also brings an element of diversification, moving into linear national TV which, along with the internet, is the dominant format in the ad market.
Commenting on the development, Branislav Miskovic, CFO of the CMI Group, said: “This investment is based on the mandate to further grow the European media we received from our shareholders. Our investment in ProSieben can be characterized as a portfolio investment, with both a long-term assumption and a strategic one in terms of its role within our portfolio. We are convinced that strong linear European TVs, which are properly able to respond to external developments, have good economic potential for the future and do not share a more skeptical view of most of the market, reflected in a decline in the market values of many European TVs”.
He added: “Specifically at ProSieben, we appreciate, in addition to the exceptionally strong brand and strong market position in the German market, which is also the strongest European market in the media and advertising industry, the very good ability to generate operational cash flow, backed by management’s commitment to acquisition and operating discipline. We appreciate the announced shift towards greater local content production and the development of digital broadcasting assets. As far as e-commerce is concerned, we do not consider it to be an essential part of the assets of linear television, but from the perspective of ProSieben, the construction of this pillar managed to create significant value from which the company will benefit in the coming years”.
