In a surprising move, RTL Group announced the acquisition of Sky Deutschland, a German pay-TV broadcaster. The agreement, approved by RTL Group’s Board of Directors, is pending regulatory approvals. "The combination of RTL and Sky is transformational for RTL Group," stated Thomas Rabe, CEO of RTL Group. "It will bring together two of the most powerful entertainment and sports brands in Europe and create a unique video proposition across free TV, pay TV and streaming. It will boost our streaming business, with a total of around 11.5 million paying subscribers, further diversify our revenue streams and make us even more attractive for creative talent, rights holders and business partners.” He further added that "The synergies are estimated to be around €250 million per annum within three years after closing, creating significant shareholder value. Together, RTL and Sky will be in an even stronger position to invest in people, content and technology in Germany and in Europe to compete with the global tech and streaming players."
Dana Strong, Group CEO at Sky, highlighted Sky Deutschland's recent success: “Sky Deutschland has made significant progress over the past three years, delivering strong operational performance and reaching a record number of customers. The business is on track to achieve EBITDA break-even, reflecting the success of our turnaround plan. Combining the strength of our brand with RTL builds on that momentum and opens up even greater opportunities. This deal provides a strong platform for long-term success, and ensures Sky continues to share in the growth of the combined business.”
The deal involves the acquisition of Sky’s operations in Germany, Austria, Switzerland, including customer relationships in Luxembourg, Liechtenstein and South Tyrol. The purchase price includes €150 million in cash and a variable consideration tied to RTL Group’s share price. RTL will also gain the Sky brand rights in the DACH region and Sky Deutschland’s streaming service, WOW. Barny Mills will continue leading Sky Deutschland until the transaction closes, with Stephan Schmitter heading the combined entity thereafter. Both companies will operate independently until regulatory approvals, anticipated in 2026, are secured. The acquisition marks a notable strategic shift for RTL, expanding into the pay-TV market and bolstering its subscription-based streaming strategy, particularly given Sky's recent acquisition of significant Bundesliga broadcasting rights.
ProSiebenSat.1, a competitor, declined to pursue a deal, citing its focus on linear-free TV and digital platforms. This contrasts with RTL’s subscription-based approach, making the Sky Deutschland acquisition strategically advantageous for RTL+. The deal underlines a clear strategy: converting viewers into paying subscribers.