Telia Company completes acquisition of Bonnier Broadcasting
- 2019-12-02 09:20 UTC
Telia Company has today completed the acquisition of Bonnier Broadcasting from Bonnier AB. The combination of the best networks and content in the Nordics enables new customer offerings and business opportunities.
“It’s a great feeling to close this transaction and finally be able to start working together with our new colleagues at TV4, C More and MTV. By combining top quality news, entertainment, drama and sport with Telia Company’s core operations, we will be able to serve customers and viewers in new ways and at the same time create value for our shareholders” says Christian Luiga, acting President and CEO of Telia Company.
On July 20, 2018, Telia Company announced the acquisition of Bonnier Broadcasting, including brands TV4 in Sweden, MTV in Finland and C More which is present in both markets, from Bonnier AB for SEK 9.2 billion on a cash and debt free basis which was equivalent to an EV/EBIT multiple of 15.3x excluding synergies. Based on rolling twelve months as per August 31, 2019, the EV/EBITA multiple was 8.4x. The acquisition is expected to generate EBITDA synergies as per 2020 with a full run-rate of SEK 600 million in 2022.
The transaction also 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 according to agreed procedures.
The European Commission approved the acquisition on November 12, 2019, and the transaction was closed today. Bonnier Broadcasting will be consolidated into Telia Company’s reporting as of today.
Casten Almqvist becomes a member of Telia Company’s Group Executive Management as Head of the new business area TV/Media.
As a media owner, Telia Company will ensure that continued editorial independence is upheld vis-à-vis the owners, Board and management. For more information, see the Board’s statement below:
Statement from the Board of Directors on Telia Company´s role as a media owner
To celebrate the acquisition, Telia Company’s B2C-customers in Sweden and all customers in Finland are as of today offered first class entertainment free of charge for two weeks in Sweden and nine days in Finland. C More and Liiga hockey will provide exciting sports, popular kids series and some of the best local drama productions during the most tv intensive period of the year.
For more information, please contact our press office +46 771 77 58 30, visit our Newsroom or follow us on Twitter @Teliacompany.
Statements made in the press release relating to future status or circumstances, including future performance and other trend projections are forward-looking statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to many factors, many of which are outside the control of Telia Company.
We’re Telia Company, the New Generation Telco. Our approximately 20,000 talented colleagues serve millions of customers every day in one of the world’s most connected regions. With a strong connectivity base, we’re the hub in the digital ecosystem, empowering people, companies and societies to stay in touch with everything that matters 24/7/365 - on their terms. Headquartered in Stockholm, the heart of innovation and technology, we’re set to change the industry and bring the world even closer for our customers. Read more at www.teliacompany.com