After a protracted bidding process, spanning almost a year, KirchMedia is finally being sold to US media magnate Haim Saban and the Saban Group.
As a first step in the deal, the two parties signed off the acquisition by Saban of a majority holding in ProSiebenSat.1, Germany’s largest free to air broadcaster. Saban is reported to be paying around €500 million for the 36% stake in the broadcaster, which will give him 72% of the voting rights.
The contract on the acquisition of the film library and the film trade business is going to be signed within the next ten days, according to Kirch.
Haim Saban was left as the only runner in the bidding process after an offer from publishing group Bauer Verlag was delayed over a disagreement on film rights (see German Publisher Abandons Bid For Kirch).
“We are extremely excited about the opportunity that lies ahead for us in rebuilding Germany’s greatest media assets. I am confident that with our extensive experience and contacts in the global media industry, combined with the continued hard work and commitment of the talented management team and employees of KirchMedia and ProSiebenSat.1 Group, we will be well positioned for significant long-term growth as advertising levels recover and overall economy improves in the world’s second largest media market,” enthused Saban in the statement.
KirchMedia filed for bankruptcy in April 2002 following months of pressure from banks and investors (see KirchMedia Files For Bankruptcy Signalling The Demise Of The Kirch Empire). Since that time its assets have been broken up and sold off whilst the core company became the subject of a long auction process.
