BERLIN -- Cash-strapped German media giant Kirch is reportedly in advanced talks to sell Rupert Murdoch a majority share in its debt-ridden pay TV division as it faces a 767 million euro ($679 million) put option from publishing company Springer.
However, Springer looks set to postpone the sale of its 11.5% stake in Kirch free TV unit ProSiebenSat.1 back to the Munich-based media group until the company is in a better financial state.
Springer has been hit hard by the advertising slump, resulting in losses last year. Kirch, which owns a 40% stake in the publisher and sees it as a key investment, said talks were continuing but did not provide further details. Springer refused comment on the negotiations.
Meanwhile, Kirch reportedly is set to turn over control of Kirch Pay TV to Murdoch before the merger of its divisions Kirch Media and ProSiebenSat.1 in June. The two sides are said to have employed Deutsche Bank to handle the deal.
Kirch and Deutsche Bank have declined to comment on the reports.
Murdoch said last week he would not rule out increasing his 22% stake in Kirch Pay TV but added that he would only do so if he also gained control of the company, which owns Germany's only digital pay TV web Premiere World. Murdoch also has an option to force Kirch to buy back the existing stake in October for about $1.9 billion, a sum Kirch may not be able to muster.
Contact Ed Meza at
ed.meza@mannaa.de