An Italian media group majority-owned by the family of the late leader Silvio Berlusconi has advanced towards acquiring the German broadcasting giant ProSiebenSat.1. The move, which could reshape the media landscape in Germany, has prompted warnings from Berlin regarding the preservation of journalistic independence. On Wednesday, ProSiebenSat.1 recommended that its shareholders accept a new offer from MediaForEurope (MFE), valuing the German company at approximately €1.9 billion (around $2.2 billion).
MFE, overseen by Pier Silvio Berlusconi, aims to establish a pan-European media group capable of competing against major streaming services like Netflix. The recent recommendation from ProSiebenSat.1 underscores a shift in their strategy, as the company seeks to enhance its market position amidst rising competition in the broadcasting sector.
Concerns from German Officials
The German government has expressed apprehension about the potential takeover. Wolfram Weimer, the German Culture Minister, quickly conveyed concerns following ProSieben’s announcement. He stated, “Should MFE actually gain majority control of ProSiebenSat.1, we expect the editorial independence of the newsrooms to be preserved.” Weimer emphasized that any future cross-border European media group should be based in Munich, where ProSiebenSat.1 is currently headquartered. He also plans to discuss the takeover with Pier Silvio Berlusconi in Berlin in September.
ProSiebenSat.1 has indicated that the MFE bid represents a long-term commitment to the company. According to their official statement, the deal could generate annual savings of €150 million. This potential acquisition marks a significant moment for MFE, which has been competing with the Czech group PPF for control of the German broadcaster.
Details of the Offer
Last week, MFE enhanced its offer by increasing the share component to 1.3 MFE shares for each ProSiebenSat.1 share, while maintaining a cash portion of €4.48 per share. This values the shares of ProSieben at approximately €8, surpassing PPF’s all-cash offer of €7 per share, which was aimed at doubling their stake. PPF has opted not to elevate its bid further.
MFE, previously known as Mediaset, has made several attempts to acquire ProSiebenSat.1 in the past, beginning with an effort in 2003 that was met with opposition from Berlin. The late Silvio Berlusconi, who significantly influenced Italian politics in the late 1990s and early 2000s, passed away in 2023, leaving a legacy intertwined with the media landscape in Europe.
Pier Silvio Berlusconi, announcing the revised offer last week, stated that MFE is focused on “building what is still lacking: a strong, locally rooted European group of sufficient size to compete globally.” He further asserted that MFE has always upheld principles of business ethics, pluralism, and freedom of information, which he insists will remain foundational to the company’s operations.
As the negotiations progress, the implications of this potential takeover extend beyond financial figures. The outcome could significantly influence the future of media in Europe, especially regarding how independent journalism is maintained in an evolving digital landscape.