European media group RTL to buy Sky Deutschland

Bertelsmann SE & Co KGaA

27/06/2025 07:26

LONDON, June 27 (Reuters) - European broadcaster RTL Group AUDK.LU said on Friday it would buy Sky Deutschland, in a deal that combines Sky's sports and streaming offerings with RTL's news and entertainment brands to create a business with 11.5 million paying subscribers.

The deal includes a 150 million euro ($176 million) upfront payment plus a variable component of up to 377 million euros - provided RTL's share price exceeds 41 euros - which Sky parent Comcast CMCSA.O can trigger any time within five years.

The purchase gives RTL, which is majority-owned by German media group Bertelsmann BTGGg.F, local access to Sky's premium sports rights including Bundesliga and Premier League soccer, and Formula 1 motor racing, as well as Sky's WOW streaming service.

A person familiar with the situation said RTL had approached Sky for the deal, and that Sky was not looking to sell any other part of its business.

RTL Chief Executive Thomas Rabe described the deal as "transformational" for the group and said it would create cost savings of around 250 million euros per year within three years of the deal closing.

"It will boost our streaming business ... further diversify our revenue streams and make us even more attractive for creative talent, rights holders and business partners," Rabe said in a statement.

He told Reuters in a separate interview that RTL would not be involved in any further consolidation in the German market.

"The issue of a merger with ProSiebenSat.1 is now definitely off the table," he said, referring to the German media group.

Sky Deutschland, which operates in Germany, Austria, Switzerland, was on track to break even on an earnings before interest, taxes, depreciation and amortization (EBITDA) basis, Sky Group Chief Executive Dana Strong said.

The business reported around 2 billion euros in annual revenue.

($1 = 0.8519 euros)

 (Reporting by Klaus Lauer in Berlin and Kate Holton in London. Writing by Sachin Ravikumar. Editing by Mark Potter and William James)

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