Pearson In Merger Deal To Create European TV Giant

Pearson Television has today agreed to merge with CLT-UFA in a deal which will see the creation of Europe’s largest “free-to-air” TV company, with annual revenues of e4 billion.

Pearson TV, the independent international production company of Pearson Plc, is responsible for programmes such as Baywatch and The Bill. CLT-UFA is co-controlled by German giant, Bertelsmann, and investment group Groupe Bruxelles Lambert, and has interests in 22 television channels and 18 radio channels across Europe.

Under the terms of the deal Pearson will own 22% of the new company and Bertelsmann will control 37%. The chief executive of the CLT-UFA, Didier Bellens, will become the CEO of the combined group.

Both companies own stakes in Channel 5 and the combined group will now control a total 65% of the fledgling station. It is expected that Richard Eyre, the chief executive of Pearson TV, will become chairman of Channel 5 after the completion of the deal.

Marjorie Scardino, chief executive of Pearson, said: “This deal puts Pearson Television at the heart of one of Europe’s most extensive – and most popular – broadcasting networks. It provides the stage on which talent can really flourish, creating compelling entertainment across radio, television and new media. We also see the chance for other parts of Pearson to work with this company to cross promote our brands and content through all media.”

Pearson: 020 7411 2000