Ambitious New Beginnings In Media Investment

Michael Hedges January 9, 2014 Follow on Twitter

Opportunity and cash are charting the ebb and flow of recent media transactions. With most developed markets, strategic investors are buyers and financial investors are sellers as valuations continue to rise. In developing markets, media asset values have plummeted to historic low levels, changing the equation. Speculators are having a field day.

Media house Antenna Group is again reaching beyond the borders of Greece, first with modest television acquisitions in Serbia, Slovenia and Montenegro, then four radio stations - Kiss FM, Magic FM, One FM and Rock FM - and music TV channel Kiss TV in Romania from ProSiebenSat.1 Media. “This investment marks the beginning of activity of Antenna Group in a country with great prospects for development,” said CEO Theodore Kyriakou, quoted by HotNews.ro (December 23). “We look forward to working closely with the station’s administration to further move their development. Antenna Group is committed to expand its presence in southeastern Europe, consistent with a development strategy of recent years.”

Prva Televizija in Serbia was acquired in 2009 from News Corporation on its exit from European media. The company bought Montenegro dark license Pro TV from local owners in 2011, rebranding it Prvy TV. In Slovenia Antenna Group and Telekom Slovenije formed a joint venture to operate Planet TV in February 2013. None of these transactions were huge, all estimated at less than €4 million. The Romanian acquisitions were likely a bit more expensive, details not disclosed, but far from the estimated €600 million return on investment Antenna Group received from the 2008 sale of Bulgarian broadcaster Nova TV to Modern Times Group (MTG).

Perhaps Mr. Kyriakou and his father, Greek shipping billionaire Minos Kyriakou, plan to operate the radio and TV channels or maybe they’d like to see investment lightening to strike twice. Regardless, they’ve hired former Cineflex Studios UK managing director and NBCUniversal International president Peter Smith as managing director. “Pete Smith is joining Antenna as we embark on the next ambitious stage of our growth strategy,” said the younger Mr. Kyriakou in a statement (January 7). “His 25-year track record in film and television will be invaluable as we consider steps to extend our international media operations. Pete will manage our expansion and help us in creating or buying new and exciting digital assets.” Antenna Group held Nova TV in Bulgaria for nine years.

Antenna Group (ANT1 Group) owns the ANT1 TV and radio franchises plus other radio stations in Greece and Cyprus .as well as Radio Express in Bulgaria. The company publishes magazines and operates production studios in Greece and Cyprus and owns a record company. The younger Mr. Kyriakou offices in London as will, presumably, Mr. Smith.

ProSiebenSat.1 Media has nearly completed its intended exit from non-German assets. Early last year the company sold Scandinavian broadcast operations to Discovery Communications. Romanian and Hungarian television channels have been sold to local owners. 

Adevarul Holdings owner Cristian Burci will acquire Romanian channel Prima TV. ProSiebenSat.1 Media lawyers asked Romanian media regulator CNA for license transfer permissions in September without naming buyers. In early December, Mr. Burci denied the floating rumors about buying Prima TV and/or Kiss TV.

“The first changes to Prima TV will be announced when the Competition Commission allows,” said Mr. Burci to paginademedia.ro (December 24). “There will be synergies in terms of content. If you have quality content in a particular area, we will expose it in the other media. It’s a formula to distribute multiplatform content.” Mr. Burci acquired Adevarul Holdings, publisher of daily newspaper Adevarul and daily tabloid Click!, in September 2012. He revealed no deal details but suggested the value was related to Prima TV’s recent financial picture, losses of “millions.”

The transfer of Hungarian channel TV2 and three associated channels to station executives in a management buyout raised a few eyebrows among the conspiratorially minded. Announcement of the sale to CEO Zsolt Simon and CFO Yvonne Dederick offered no transaction details except that financial partners are Hungarian, in accordance with government policies restricting foreign ownership. Critics suspect the channel will fall under political control of Prime Minister Viktor Orban’s ruling right-wing Fidesz Party.

Opposition politicians Robert Braun and Viktor Szigetvari, at a joint press conference, called for TV2 and ProSiebenSat.1 Media officials to make a full disclosure of transaction details, saying Mr. Simon or Ms Dederick having sufficient personal funds to buy the company is “inconceivable,” reported nepszava.hu (January 4). In a highly unusual response, a statement from ProSiebenSat.1 Media referred to critic’s charges as “outrageous and perverse.”

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