German pay-TV broadcaster Premiere will join Rupert Murdoch’s Sky brand family, starting in July, as it restructures its business and aims for profitability in 2011. Premiere’s largest shareholder is Murdoch’s News Corp with a stake of 30.5 percent. News Corp fully owns Sky Italia and holds a 39 percent stake in Britain’s BSkyB.
“The decision is far more than the changing of a name … it is part of our overall recharging of the business,” Chief Executive Mark Williams said on a conference call yesterday. The corporate identity switch to Sky Deutschland will hit second-quarter net income by 256.1 million euros ($347.1 million), comprised of a write-off on the value of its trademark and a release of deferred tax liabilities, Premiere said.
Williams, seen as a Murdoch confidant, took the helm of Germany’s only pay-TV broadcaster last year to turn the struggling business around. In the process Premiere launched two capital hikes, giving it new long-term credit facilities of 525 million euros.
With the proceeds of the capital increase, Premiere has said it is planning to make investments in programming, technology and marketing aiming to attract new subscribers to its services. Premiere’s main draw is German premier-league soccer although it also shows movies, documentaries and dramas.
(Source: Reuters)
