July 8, 2015 at 12:48Together, Axel Springer and ProSiebenSat. 1 can become the largest media company in Europe
German publisher Axel Springer and media corporation ProSiebenSat.1 are in talks to merge. Negotiations are still at the initial stage, but it is known that Axel Springer plans to retain control in the combined company.
ProSiebenSat.1 owns such large German channels as SAT.1 , ProSieben , Kabel Eins , SAT.1 Gold , ProSieben MAXX . Last year, the company's revenue amounted to 2.9 billion euros. ProSiebenSat.1 is one of the largest independent media corporations in Europe.
Axel Springer has recently been rapidly expanding its influence in the online segment of the publishing market, although previously it was mainly engaged in print media. In the third quarter of 2014, more than half of the company's revenues came from digital media. Thus, in fiscal 2014, Axel Springer's revenue was more than 3 billion euros. The most famous projects of the company are the Bild magazine and the daily newspaper Die Welt .
The merger was planned to be carried out ten years ago. The transaction did not take place due to the ban of antitrust authorities in Germany. However, last year the companies were still able to prove the unreasonableness of the ban.
To date, the capitalization of ProSiebenSat.1 has reached 9.7 billion euros. While ten years ago, Alex Springer estimated it at 4 billion euros. Alex Springer herself is now valued at 4.7 billion euros. Since the capitalization of ProSiebenSat.1 is much larger, the corporation should also receive a greater number of votes in the combined company. Then the share of Frida Springer (owns 57% Alex Springer) after the merger may decrease to 20%. Therefore, most likely, she will insist on joining in the form of a limited partnership in order to get an authoritarian voice in the new company, writes The Wall Street Journal.
The capitalization of the combined company may amount to 14.4 billion euros. This will allow her to become the largest media company in Europe. The merger will enable Axel Springer and ProSiebenSat.1 to use more channels to promote their products. In addition, they will be able to use their dominant position in the traditional media segment to finance growth in digital media.
ProSiebenSat.1 owns such large German channels as SAT.1 , ProSieben , Kabel Eins , SAT.1 Gold , ProSieben MAXX . Last year, the company's revenue amounted to 2.9 billion euros. ProSiebenSat.1 is one of the largest independent media corporations in Europe.
Axel Springer has recently been rapidly expanding its influence in the online segment of the publishing market, although previously it was mainly engaged in print media. In the third quarter of 2014, more than half of the company's revenues came from digital media. Thus, in fiscal 2014, Axel Springer's revenue was more than 3 billion euros. The most famous projects of the company are the Bild magazine and the daily newspaper Die Welt .
The merger was planned to be carried out ten years ago. The transaction did not take place due to the ban of antitrust authorities in Germany. However, last year the companies were still able to prove the unreasonableness of the ban.
To date, the capitalization of ProSiebenSat.1 has reached 9.7 billion euros. While ten years ago, Alex Springer estimated it at 4 billion euros. Alex Springer herself is now valued at 4.7 billion euros. Since the capitalization of ProSiebenSat.1 is much larger, the corporation should also receive a greater number of votes in the combined company. Then the share of Frida Springer (owns 57% Alex Springer) after the merger may decrease to 20%. Therefore, most likely, she will insist on joining in the form of a limited partnership in order to get an authoritarian voice in the new company, writes The Wall Street Journal.
The capitalization of the combined company may amount to 14.4 billion euros. This will allow her to become the largest media company in Europe. The merger will enable Axel Springer and ProSiebenSat.1 to use more channels to promote their products. In addition, they will be able to use their dominant position in the traditional media segment to finance growth in digital media.