Viaplay in talks with owners, lenders for recapitalisation
23/10/2023 22:38
OSLO, Oct 23 (Reuters) - Swedish streaming company
Viaplay VPLAYb.ST said on Monday it was in talks with three
major shareholders as well as lenders and bondholders regarding
a potential recapitalisation of the group, and was also in
discussions to sell non-core operations.
Due to the talks, Viaplay said it would postpone its
third-quarter earnings report, presenting it no later than Nov.
29 rather than the original plan of reporting on Oct. 24.
Under pressure to stabilise its business as rising living
costs dented consumer demand, Viaplay in June replaced its CEO
and has repeatedly warned of a weakening business environment
that has sent its share price tumbling 86% year-to-date.
New CEO Jorgen Madsen Lindemann in July announced layoffs
and said the company would focus on its core Nordic, Dutch and
Viaplay Select operations, while downsizing, partnering, or
leaving other markets.
"The group has already reduced its workforce by over 30%
since July, as well as discontinuing a number of original
productions and renegotiating a number of distribution
partnerships," Viaplay said in a statement on Monday.
The company did not name the shareholders, lenders and
bondholders involved in the talks.
Vivendi's VIV.PA CANAL+ Group in July bought a 12% stake
in Viaplay, while Norwegian media group Schibsted later bought a
10% stake, making them the two largest owners according to LSEG
data.
(Reporting by Terje Solsvik
Editing by Bill Berkrot)
((terje.solsvik@thomsonreuters.com; +47 918 666 70;))