Germany: Springer terminates plans to acquire broadcaster

Posted by Anna-Maria Mende on February 1, 2006 at 9:54 AM

German publisher Axel Springer dropped its plan (see previous posting) to acquire broadcaster ProSiebenSat.1 for 4.2 billion euros. Springer, publisher of Europe's best selling newspaper, the tabloid Bild, announced today that it reached a mutual agreement with the investor group lead by Saban Capital Group to terminate the deal, writes Forbes. The German cartel office had rejected the deal on January 23th (see previous posting), saying the takeover would give Springer a "dominating influence" on Germany's public opinion.

Springer has analyzed possibilities for an appeal and the possibility to seek the economy minister's approval (see former posting). "A possible appeal or a possible application for a ministerial permit would have resulted in unacceptable risks for all parties involved,'" said Springer in an e-mailed statement, reports Bloomberg. Springer's plan was to create a second German media company that combines print and television to challenge the Bertelsmann AG. Now Springer might focus on expanding its newspapers and magazines outside Germany.

Though not committed to selling the broadcaster, Haim Saban, ProSiebenSat.1's top investor, and his partners have already begun talks with interested European broadcasters, U.S. media conglomerates and private equity firms, reports Reuters.

Quelle: FAZ.net (in German), Bloomberg.com, Forbes, Reuters