Mediaset could increase stake in ProSieben further -source (updated)

RTL SA

12/11/2019 11:29

(Adds details)
    By Elvira Pollina
    MILAN, Nov 12 (Reuters) - Italy's top commercial broadcaster
Mediaset  MS.MI  could further increase its stake in German peer
ProSiebenSat.1  PSMGn.DE  as part of its strategy to build a
pan-European TV group, a source with knowledge of the matter
said on Tuesday.
    Controlled by the family of former Prime Minister Silvio
Berlusconi, Mediaset now holds 15.1% of ProSieben after it
bought a 5.5% stake in the group on Monday through its Spanish
unit Mediaset Espana  TL5.MC .  urn:newsml:reuters.com:*:nL8N27R693
    No decision has been taken yet, but the Italian group could
as a next step raise its stake in the German company to just
below 20%, the source said.
    Established European broadcasters are looking for ways to
respond to growing competition from streaming services such as
Netflix Inc  NFLX.O  and online advertising giants like Alphabet
Inc's Google  GOOGL.O  and Facebook Inc  FB.O .
    Mediaset has invested around 520 million euros so far and
has become ProSieben's largest investor.
    In response to Mediaset's Monday stake increase, ProSieben
said it welcomed such investments as an affirmation of the
group's strategy. 
    ProSieben Chief Executive Max Conze is seeking to move away
from commercial TV towards the more profitable businesses of
digital, content production and e-commerce.
    The Munich-based broadcaster is. however. sceptical about
the merits of cross-border European TV mergers, showing a
preference for partnerships such as a joint venture in
advertising technology with competitor RTL Group  RRTL.DE .
    A second source said on Tuesday that Mediaset was not
planning to increase its stake at this stage but did not rule it
out in the future.
    The Italian broadcaster is not planning a takeover of the
German company but wants to convince ProSieben that an agreement
over a closer tie-up is necessary, one of the sources said.  
    Mediaset aims to press ahead with a corporate overhaul and
merge its Italian and Spanish business into a Dutch holding
company, dubbed MediaforEurope, to pursue pan-European tie-ups,
including a potential merger with ProSiebenSat.1.
    That would allow it to provide streaming services across
Europe.
    Vivendi  VIV.PA , Mediaset's second largest shareholder, is
challenging the plan in the courts claiming it includes a
governance structure that would favour Berlusconi's holding
Fininvest and tighten its grip over the broadcaster.
    Mediaset shares were up 3.2% at 1030 GMT, while ProSieben
was up 0.9%.
 

 (Additional reporting by Douglas Busvine; writing by Francesca
Landini; editing by Giselda Vagnoni and Jason Neely)
 ((francesca.landini@thomsonreuters.com; +39 02 66129437;
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