The deal gives Premiere the rights that it lost out on to UnityMedia's in December 2005. Under the deal, Premiere acquires the sub-license pay-TV rights for the Bundesliga and 2nd Bundesliga division for 2007-08 and 2008-09 seasons.
Premiere will also take over the TV rights previously held by arena for the Spanish Primera División and the English Premier League. The sublicensing of the Bundesliga rights is the centerpiece of an extensive agreement between Premiere, arena and Unitymedia, which has been modified in the past months following talks with the German Cartel Office.
The German Cartel Office had voiced reservations regarding the original agreement closed between the parties in February 2007. Now, the German Cartel Office tolerates the modified agreement: FCO-proceedings have been closed, making the contract effective as of today. arena will receive 16.4 million shares in Premiere AG from an authorized capital increase as part of the deal.
Premiere now expects 2008 earnings before interest, tax, depreciation and amortisation (EBITDA) of between E180 million ($248.1 million) and E200 million versus a previous target of more than E200 million. It sees sales exceeding 1.2 billion euros next year.
Dr. Georg Kofler, CEO of Premiere AG said: “This transaction strengthens Premiere sustainably – both in economic and strategic terms. Premiere now offers more attractive programming than ever before. Premiere is available via all modern transmission channels: via satellite, cable and broadband IPTV. We are now better able to market key innovations such as Premiere HD and the new interactive receivers. Premiere will benefit from the accelerated digitization in cable and satellite households: the technical entry barriers will be eliminated step by step. This transaction substantially increases the brand value of Premiere as the leading pay-TV operator in Europe’s largest media market.”
