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Telia completes Bonnier Broadcasting acquisition

Monday 2 December 2019 | 14:49 CET | News

Telia Company said it has completed the acquisition of Bonnier Broadcasting from Bonnier AB. The operator said that as a media owner, it will ensure that continued editorial independence is upheld vis-a-vis the owners, board and management. The state owned 38.4 percent of Telia in June 2019 and when the deal was first announced in July 2018, Prime Minister Stefan Lofven said it was not appropriate for the state to own a terrestrial TV station, meaning TV4.

To celebrate the acquisition, Telia's B2C-customers in Sweden and all customers in Finland are being offered free entertainment for two weeks in Sweden and nine days in Finland. It said C More and Liiga ice hockey will provide sports, children’s shows and local drama productions.

The acquisition also includes MTV in Finland and C More in both Sweden and Finland. Telia has paid SEK 9.2 billion on a cash and debt-free basis equivalent to an EV/EBIT multiple of 15.3 times, excluding synergies. Based on rolling twelve months to 31 August 2019, the EV/EBITA multiple was 8.4 times.

The acquisition is expected to generate EBITDA synergies as per 2020 with a full run-rate of SEK 600 million in 2022. The transaction includes an earn-out based on certain financial and operational metrics. The size of the earn-out of a maximum of SEK 1 billion is yet to be determined.

Bonnier Broadcasting CEO Casten Almqvist becomes a member of Telia Company’s general executive management as head of the new business area TV/media.



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Categories: Broadcast & Satellite / General
Companies: Bonnier / C More / MTV / Telia
Countries: Finland / Sweden
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