RTL Buys Sky Deutschland in Record Media Deal

RTL Group, owned by Bertelsmann, has agreed to acquire Comcast's Sky Deutschland for €150 million upfront, with up to €377 million in additional payments tied to RTL's share price. The deal, expected to close next year pending regulatory approval, will combine Sky's premium sports rights—including Bundesliga, German Cup, Premier League, and Formula 1—with RTL's entertainment and news, resulting in a business with about 11.5 million subscribers and annual revenues of €8.2 billion. This acquisition is RTL's largest to date and will make it the third-biggest streaming provider in Germany, behind Netflix and Amazon Prime. Annual cost synergies are forecast at €250 million within three years. Sky Deutschland, which operates in Germany, Austria, and Switzerland, is expected to reach break-even this year after restructuring. RTL will gain the rights to the Sky brand in several European countries and acquire Sky's streaming service, WOW, as part of the transaction.