RTL Group enters Greek market via Alpha Media
RTL Group, Europe’s biggest broadcaster, has agreed to purchase a 66.6 percent stake in Alpha Media Group for 125.7 million euros as it enters the local television market. RTL said it had signed an agreement with Dimitris Contominas, the owner of Alpha Media Group, which is the third-largest TV company in Greece. The transaction is subject to approval by the Greek Competition Commission and is expected to be completed by November. Alpha Media Group has annual sales of around 100 million euros, according to RTL. Under the terms of the deal, RTL will occupy five of the nine seats on the Alpha Media Group’s board of directors and will have the right to nominate the chief executive and chief operating officer, while Contominas will nominate the chairman of the board of directors. «As the leading European entertainment network, we will contribute our expertise and experience toward building a strong broadcasting company in an attractive market in close cooperation with our local co-shareholder Dimitris Contominas,» RTL CEO Gerhard Zeiler said in the statement. RTL has been expanding outside Germany, its biggest market, and operates 44 TV channels and 32 radio stations in 10 countries. Greece’s television market is projected to grow by 6 to 7 percent each year in the medium term, the company said. Alpha Media is the third-largest broadcasting company in Greece and operates radio channels Alpha 98.9 FM and Palmos 96.5. RTL is owned by media conglomerate Bertelsmann, which said last month it would consider cutting its stake to 75 percent from 90 percent, freeing RTL shares that could be used as acquisition currency.
