Telia Company has acquired one of the major commercial media houses in the Nordics, Bonnier Broadcasting as it intends to expand it's mobile network across Northern Europe.
“It is a very important day for Telia Company. The acquisition is a natural next step to complement Telia Company’s core business, where our millions of customers give us a very strong position in the market. Together with TV4 we will serve customers and viewers in new ways and create new business opportunities,” says Johan Dennelind, President and CEO of Telia Company. “We have great respect for our new role as a media owner and have a clear view of how we will maintain the editorial integrity of the business going forward. I look forward to welcoming some of the most talented TV-content producers in the Nordics to Telia Company.”
The way information and entertainment is produced, distributed and consumed has profoundly being transformed. TV and content have been an vital part of Telia Company’s strategy since 2014 and the company has successfully established a TV-business currently serving approximately 1.8 million households.
In 2017, the exclusive rights to the Finnish ice hockey League, Liiga, were obtained. The acquisition of TV4, C More and MTV is of strategic importance to Telia Company as it strengthens the company in the rapid-growing area of video content consumption.
“We are proud of what we have achieved with our businesses within Bonnier Broadcasting. Telia Company, with its leading mobile networks and technical capabilities, will be an excellent owner and develop these businesses further,” says Tomas Franzén, President and CEO of Bonnier AB.
The acquisition will establish a new business area for Telia Company, where both Telia’s existing TV business and the Bonnier Broadcasting businesses will be included. The intention is that Casten Almqvist, who is currently CEO of Bonnier Broadcasting, will become CEO of that business area.
The acquisition of Bonnier Broadcasting will not affect Telia Company´s share buy-back program or dividend policy. The transaction is expected to generate synergies as per 2020 with a full run rate of SEK 600 million in 2022.
The acquisition is subject to regulatory approvals and is expected to be completed during the second half of 2019.