Scandi MTG ups Russia stake
Group makes long-term commitment
MTG announced Friday that it had acquired the remaining 25% of network DTV. It acquired 75% of the station, then-titled Daryal-TV, for $4.5 million in 2001 from its founders Arkady Weiner and daughter Natalya Daryalova.
Simultaneously, MTG announced it had increased its stake in U.S.-registered StoryFirst Communications, which runs successful web CTC and 13 regional stations in Russia.
MTG paid $9.6 million for a further 1.9% of StoryFirst, taking its holding in the company to 39.9%.
That purchase follows an investment in July of $53.4 million in Story First stock, and values the company at approximately $500 million.
"Our increased shareholding in StoryFirst further emphasizes our long-term commitment to the Russian market. CTC is offering viewers in more than 700 cities around Russia unrivaled access to entertainment at its very best and CTC is one of the fastest-growing channels in one of the fastest-growing markets," said Hans-Holger Albrecht, president-CEO of MTG.
CTC has an audience of more than 100 million and, under the leadership of Alexander Rodnyansky, has been steadily increasing its share to challenge for third place among local broadcasters. It had a national aud share of 10.1% during the second quarter of 2004.
