Germany: "Early negotiations" between Axel Springer and ProSiebenSat.1 about a possible merger

The German broadcasting group ProSiebenSat.1 and the German media group Axel Springer (Bild, Die Welt Transfermarkt.de) are "at an early stage of negotiations" with a view toward a merger, several sources indicate to Reuters and The Wall Street Journal, on 06 and 07/07/2015.

The two groups did not wish to comment on the reports. The free-TV channel Kabel Eins (ProSiebenSat.1 group) aired the Europa League in Germany during the 2012-2015 cycle. "Bundesliga bei Bild" provides match summaries of the Bundesliga and 2.Bundesliga on the Internet and mobile devices to subscribers of the digital versions of Bild and Die Welt.

Axel Springer and ProSiebenSat.1 both focus their development strategies on distribution platforms for digital content.

A transaction subject to the approval of the German Competition Authority

• The cumulative market capitalisation of the two groups amounts to €14.4bn:
  • €9.7bn for ProSiebenSat.1
  • €4.7bn for Axel Springer
• ProSiebenSat.1 holds 28.9% of the German market for free-TV.
• It is possible that the negotiations could fail because of a ban by the German…