Slovenia Joins Euro-Zone, MTG Buys In
Michael Hedges July 13, 2006
That Slovenia became the first of the newest European Union Member States adopting the Euro currency surprised no body. Nor is it a surprise that big television operators are circling around south-east Europe.
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 Modern Times Group (MTG) picked up 3rd ranked PRVA TV for a bargain €8.1 million, just under 12 times revenue. MTG already operates pay cable Viasat channels in Slovenia.
In a statement announcing the deal, MTG President and CEO Hans-Holger Albrecht made a point of mentioning Slovenia’s “low inflation, a stable political climate and increasing integration into the EU.”
And Albrecht made clear that south-east Europe is in his sights. “The Slovenian market presents considerable potential for MTG over the coming years, as well as a platform for potential expansion into the former Yugoslav republics, his statement added."
Slovenia officially enters the Euro-zone January 1, 2007, a move broadly seen as essential for foreign investment. It is the 13th country to adopt the Euro. Lithuania’s bid for the Euro-zone was rejected because of high inflation.
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In a very large white house on the outskirts of Ljubljana sits RadioHit, the top rated privately owned station in Slovenia. Recently, after operating three months in the basement, they started moving into new but not quite finished studios. Today they’re still busy.
The largest and most profitable television operation in central and eastern Europe was returned to Ron Lauder for a mere $642m.
If counting stations best measured a regions broadcasting health, radio in the western Balkans would be called strong and thriving. It is not.
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Other States formerly part of Yugoslavia are attracting the interest of big TV companies. RTL recently launched a television channel in Croatia, on the EUs short list for the next round of new Members with Romania, Bulgaria and Turkey. News Corporation was granted a television license in Serbia, currently being challenged in Serbian courts by the previous license-holder.
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After buying 9 million shares of P4 Radio Hele Norge from institutional investors (September 11) Modern Times Group (MTG) triggered a condition of the shareholders agreement forcing it to purchase all outstanding shares. MTG started the week holding 39%. The purchase of 9 million shares at NOK 30 (€3.58) brought its holding to 68%, triggering the mandatory buy-out of other shareholders....MORE
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