RTL channels pact
Von Holtzbrinck deal yields stake in N-TV
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The acquisition partners RTL with AOL Time Warner, which owns 50% of the Berlin-based broadcaster.
The Euro broadcasting group also is taking over Holtzbrinck's stakes in 12 German radio stations.
RTL has been after the news netlet for years and nearly bought half of AOL TW's stake last year, but held back due to the high asking price.
Move shores up RTL's news division in Germany, allowing for increased cooperation with its other webs, and takes a further step toward rounding out its family of channels in the territory.
Its main rival, the bankrupt Kirch Group, launched its news web in 2000, although with Kirch Media about to change hands, the fate of that channel remains unclear.
The acquisition of Holtzbrinck's assets in 12 stations also solidifies RTL's position as Germany's largest radio player. Company currently has seven stations in Germany. Move will give RTL a total of 27 radio and 24 TV outlets throughout Europe.
"Our strategy is to develop our TV, radio and content portfolio in the main European markets," said Didier Bellens, RTL Group CEO.
RTL's leading German channel RTL TV and its CEO, Gerhard Zeiler, will be in charge of the N-TV stake. Launched in 1992, N-TV posted revenues of $70 million last year but saw losses of around $14.6 million. It has a market share of 0.7% of the total TV audience.
The acquisition is subject to approval by regulatory authorities as well as N-TV's fellow shareholders, who have first-buy rights. AOL TW already has endorsed the move and minority shareholders are expected to follow suit.
Deal is seen as part of a swap between RTL parent Bertelsmann and Holtzbrinck, which took over the regional newspaper business of Bertelsmann subsidiary Gruner+Jahr in June. That deal, valued at roughly the same price, also is subject to regulatory approval.
