Frankfurt (Germany) (AFP) – An Italian media group majority-owned by late leader Silvio Berlusconi’s family moved closer to taking over a German broadcasting giant Wednesday, sparking warnings from Berlin that its journalistic independence must be maintained. ProSiebenSat.1, one of Germany’s biggest private broadcasting groups, recommended its shareholders accept a fresh offer presented by MediaForEurope (MFE) last week, valuing the German company at nearly 1.9 billion euros ($2.2 billion).
MFE, led by Pier Silvio Berlusconi, son of the late media tycoon and former politician, aims to build a pan-European group big enough to compete with increasingly popular streaming giants such as Netflix. The German government has however been wary of the potential takeover by MFE, and German Culture Minister Wolfram Weimer was quick to express concerns after ProSieben’s recommendation. “Should MFE actually gain majority control of ProSiebenSat.1, we expect the editorial independence of the newsrooms to be preserved,” he said on X, adding that any future cross-border European media group should be headquartered in Munich, where ProSieben is currently based.
Weimer also added that he would discuss the mooted takeover with Pier Silvio Berlusconi in Berlin in September. Announcing its decision to back MFE’s latest offer, the German group said the bid “underscores MFE’s long-term investment and continued commitment to ProSiebenSat.1.” A deal could also deliver annual savings of 150 million euros, it said in a statement.
The Italians, who already had a substantial stake in ProSieben, had been competing with Czech group PPF for the German broadcasting giant. Last week MFE boosted the share component of its bid to 1.3 MFE shares for each of ProSieben’s shares, while keeping the cash component the same at 4.48 euros per share. This values the shares of the German group at around eight euros, above PPF’s all-cash offer of seven euros a share, which aimed to double its holding. PPF decided not to raise its own offer.
MFE, the biggest commercial television network in Italy and one of the biggest in Europe, did not respond to ProSieben’s announcement Wednesday. But announcing its improved offer last week, Pier Silvio Berlusconi said MFE was aiming to “build what is still lacking: a strong, locally rooted European group of sufficient size to compete globally.” He also stressed that “MFE has always upheld its founding values: business ethics, pluralism, freedom of information, employment protection. It will continue to uphold these values at all times and everywhere.”
Formerly known as Mediaset, MFE has sought to acquire ProSieben on several occasions in the past — its first attempt was back in 2003, with Berlin opposing the move. Silvio Berlusconi, who dominated Italian politics in the late 1990s and early 2000s, died in 2023.
© 2024 AFP
