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The price tag lands at 9.2 billion euros for Telia's new television business, while Bonnier Broadcastings Casten Almqvist proposes to become CEO. The agreement will be first reviewed by the Competition Authority – and what is happening with the state ownership of the telecommunications giant is easy to see.
Today, it has been announced that Telia Company acquires Bonnier Broadcasting – and its activities in TV4, C More and Finnish MTV – from Bonnier.
Bonnier Broadcast achieved a turnover of 7.49 billion SEK last year
With the acquisition, Telia will form a new business sector, where Bonnier Broadcasting will be included. The intention of Telia is that the current CEO of Bonnier Broadcasting, Casten Almqvist, will be CEO of the new business area.
To comment on Casten Almqvist's case:
– This agreement further strengthens Bonnier Broadcasting's existing strategy, and it makes sense to look at changes in a global and highly competitive media market. With Telia as our owner, we are creating even better conditions for our commitment to high quality Swedish content, from news and sports to drama and entertainment. With Telia's position in technology and distribution, we are gaining new opportunities to reach our programs and services with large user groups in Sweden and Finland.
Thomas Franzen, CEO of Bonnier AB:
TV4, MTV and C More get an owner and a platform to grow and offer the best possible conditions. This combination also strengthens the ability of TV4, MTV and C Mores to compete in the fight for attractive content, he says.
Thomas Franzen believes that the transaction strengthens the company defensively and offensively:
– For Bonniers We are both defensive and offensive: we will be able to strongly strengthen our balance sheet while relying on our strategy Driven by digital user revenues, we can invest in existing businesses and consider significant investments in new areas. Thus, the business is well framed both by the long-term business we represent as a business, and by the maneuvering space and power we wish to invest in. growth and develop our digital customer offerings. We ensure that we will continue to be strong and long-term in the future, which is beneficial both for our businesses and for the social function of our operations. "
The price reached 9.2 billion, with a potential purchase price up to SEK 1 billion.The potential situation is based on future earnings and EBITA development.
Agreement must be examined by the Competition Authority before approval, and Bonnier will write a press release that will be completed in the second half of 2019.
The state is the main owner of Telia last year sold 80 billion and generated a profit of 13 billion.What happens to the 37 percent state ownership in the telecommunications giant remains to Criticism argued that the state, with both Bonnier Broadcasting and SVT in their possession, becomes the most important power factor in the media world.
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