Big German media company buys big UK media company

German publishing and media house Bauer picked up most of the remaining Emap UK media assets for a cool €1.58 billion. The deal hits several new marks, not the least of which is the biggest investment in UK media by a foreign company… or any company. Emap can now slide off into the night with its business to business businesses.

The deal was announced Friday morning (December 7). Emap Executive Chairman Alun Cathcart said, in the statement, that the deal “…fully reflects the value of the two divisions.”  Bauer CEO Heinz Bauer, in a very brief statement, said “…the proposed acquisition of Emap pushes ahead our expansion strategy abroad.”  Bauer will offer a more complete description of the deal next week.

Outside Germany, Heinrich Bauer Verlag is far less well-known than, say, Bertelsmann/RTL, ProSeibenSat1, Axel Springer or WAZ. The closely held company is one of the Europes’ largest consumer magazine publishers, present in 14 countries. It’s currently present in the UK with several magazine titles.

Only recently has Bauer invested in radio, buying top rated Polish station RMF FM about a year ago. When the ink is dry and the check is cashed Bauer will be the second biggest radio broadcaster in the UK. Bauer holds minority stakes in German radio station Radio Hamburg (25%) and TV channel RTL2 (32%), in joint ventures with RTL.  

Until the sub-prime mortgage crash, most observers expected one of the giant private equity firms to snap up Emap, spin off the parts and get rich(er). Bids for Emap’s B2B businesses, its most profitable, did not reach the kind of numbers the company needed. Hence, it’s keeping that part to itself, smaller and still spinning cash.

Several UK (and other) broadcasters wanted parts of Emap. Maybe they’ll get their chance. And, again, maybe not. - Michael Hedges - November 30, 2007

Keywords:radio in the UK, foreign ownership

Flying Through Turbulence – Media in the New EU Member States

ftm reports on media in the 12 newest EU Member States. Will media find clear air or more turbulence? 98 pages PDF file (February 2007)

Free to ftm members and others from €39

Order

Rupert Murdoch - The Media Mogul

From Australia to the San Antonio, Texas tabloid to News Corp and News International, Mr. Murdoch fascinates all media watchers. Included is up to date information on the Dow Jones speculation and real deals, too. When Murdoch talks, the media world listens, and he has a lot to say about newspapers, broadcasting and new media. 42 pages PDF (June 2007)
Free to ftm members, others from €39
Order

Media Measurement Moves Forward and Everywhere

Includes: mobile and internet metrics, electronic measurement systems and device descriptions, RAJAR (UK) debate, with comments. 57 pages PDF (May 2007)
Free to ftm members, others from €39
Order