Telia Company acquires Bonnier Broadcasting

We are combining Telia Company's leading mobile and fixed network with one of the most successful commercial media-houses in the Nordics

For us, this deal is about offering our customers clear added value. TV and content have for many years been an important business for Telia and we already have a successful television business, serving 1.8 million households today. Now we are taking the next step. By combining Telia Company's leading mobile and fixed network with one of the most successful media-houses in the Nordics, with well-known brands such as TV4, C More and Finnish MTV, we will be able to deliver world-class television.

Of the ten most watched programs in Sweden in 2017 nine were Swedish, and ten out of ten in Finland, so there continues to be a strong demand for Swedish and Nordic content. Bonnier Broadcasting has many famous shows, including Let’s Dance, Solsidan, Nyhetsmorgon and Så mycket bättre in Sweden and Kymmenen Uutiset, Salatut Elämät and Putous in Finland. Local content is something that our customers like and want to see more of. Local content is something that our customers like and want to see more of.

Together we will create even better opportunities for Swedish and Nordic drama, entertainment and editorial journalism. We want to make it as easy as possible for customers to see the films, series and TV channels that they want. 

We are proud of this deal. We have deep respect for our new role and will of course make sure that the editorial independence is safeguarded and that customers with continue to be able to watch their favourite programs as usual.

Editorial independence

TV4 and MTV produce high-quality news and journalism, distinguishing them from other commercial channels. It is of great societal importance, where editorial independence is a central prerequisite for viewers’ trust.

Telia Company will take a series of measures to continue to ensure that the editorial independence is safeguarded;

  • The new business unit will be a separate organization within Telia Company and will have a Responsible editor, just as it does today
  • Telia Company have long been working to establish rigorous ethics and compliance, which will now be expanded to also include editorial independence
  • Telia Company will conduct external reviews to evaluate and ensure that we comply with the expected standards of editorial independence.

These actions are a consequence of the responsibility that arises with the acquisition of a media company. We are looking forward to welcoming some of the best people in the tv industry in the Nordics as a part of this acquisition. 

 

Corporate Governance

Telia Company’s corporate governance structure requires shareholders to elect a Board of Directors during the annual shareholder meeting. All members of the Board are independent of larger shareholders.

The company’s Nomination Committee, who propose new Board Members, represent the largest shareholders in the company. The Chairman of the Nomination Committee is Telia Company’s largest shareholder, the Swedish state. Other than their representation at the Nomination Committee and during the elections at the annual shareholder meeting, shareholders have no influence on the operations of Telia Company.

The Board of Directors appoint a CEO who is responsible for carrying out Telia Company’s operations. The CEO reports to the Board of Directors on how the proposed strategy is carried out and follows up on financial results.

Questions and answers

Answering some key questions

  1. Why are you buying Bonnier Broadcasting?
    Content is an important part of our strategy. We strive to enrich our core business by offering our customers real added value. The acquisition is a natural next step. We will combine Telia's first-rate networks, broad customer base and technical expertise with Sweden's most successful commercial media house, TV4.

  2. Why should Telco’s own content?
    The way in which information and entertainment is produced, distributed and consumed is profoundly being transformed. This deal should be seen through that lens. By owning a media company ourselves, we increase our opportunities to create the tv offering of the future, including exciting bundles, better services and high quality content.

  3. How will this effect customers?
    In time, we will give customers and viewers new experiences, together we will have the resources to develop world-class local content. Initially, there will be very limited changes. All those who watch TV4 today will of course be able to do so also in the future.

  4. How will you handle the role as a publicist?
    We respect the new role as a media owner we play by acquiring Bonnier Broadcasting and will of course maintain the editorial independence with in relation to the management, board and owners going forward. The new media business will be a separate business area and the responsible editor will be handled as today. That TV4 and MTV operates news and journalism of high quality differentiates them from other commercial channels and is an important part in their success.

  5. Will TV4 begin to cost?
    TV4 has a clear and successful business model, ad supported and therefore free for whoever is watching. We absolutely do not want to change that.

  6. How does this affect your dividend policy?
    We are secure in our balance sheet, and this decision will not impact dividends or other acquisitions.

Next steps

                          

Contact

Press offices

Sweden

Call: +46 771 77 58 30
Email: irene.krohn@teliacompany.com

Finland

Call: 02040 54000
Email: communications-fi@telia.fi

Investor relations

Andreas Joelsson

Head of IR

Call: +46 70 863 33 27

Anders Nilsson

IR Manager

Call: +46 (0) 727 26 26 25