The alliance creates a strong pan-European footprint that enables its members to invest in consumer-focused digital start-ups, such as classifieds, social media, e-commerce, and marketing companies that are looking to expand their geographical footprint. In return, the alliance members will provide the digital start-ups with certain volumes of advertising media.
MTG has a strong track record of using its powerful combined online and offline reach to build up successful international consumer brands such as CDON and Nelly.
With linear and online presence in Scandinavia, the Baltics, Czech Republic, Hungary and Bulgaria, MTG is joined in this alliance by founding members ProSiebenSat1 (Germany), Channel4 (UK), TF1 (France), Dogan TV (Turkey) and TVN (Poland). Discussions with further potential members are ongoing.
“MTG has always been at the forefront of digital development, and working together with ProSieben and others will further accelerate the strong growth we already have in this space. We have done several media for equity deals over the years and know that they can be a very effective way to both accelerate the growth of these businesses and create shareholder value for MTG.”
Jørgen Madsen Lindemann, MTG President and CEO
The alliance will operate on a non-committal referral basis, whereby members will refer investment opportunities to each other, and decide independently on a case by case basis whether an investment will be made and at what level.
MTG (Modern Times Group MTG AB (publ.)) is an international entertainment group. Our operations span six continents and include TV channels and platforms, online services, content production businesses and radio stations. We are also the largest shareholder in CTC Media, which is Russia’s leading independent media company. Our shares are listed on Nasdaq OMX Stockholm (‘MTGA’ and ‘MTGB’).
The information in this announcement is that which MTG is required to disclose according to the Securities Market Act and/or the Financial Instruments Trading Act, and was released at 17:40 CET on 15 October 2014.