Pier Silvio Berlusconi Raises MFE Offer for Germany’s Prosieben

MediaForEurope Increases Takeover Offer for ProSiebensat.1 to $2.4 Billion

MediaForEurope, a TV group controlled by Italy’s Berlusconi family, has recently raised its takeover offer for German broadcaster ProSiebensat.1, now valuing the company at approximately $2.4 billion.

After an initial lowball offer in March, which was about to expire, MFE has revised its voluntary public takeover bid to €4.48 ($5.22) per share in cash and 1.3 newly-issued MFE-A shares for each ProSiebenSat.1 share. This new offer values ProSieben’s shares at €8.15 ($9.51) based on the MFE-A stock price on the Euronext Milan Stock Exchange as of Friday, according to ProSieben.

MediaForEurope is now offering €1.3 billion ($1.5 billion) for the 70% of ProSieben that it does not already own, representing a significant 45% increase from its initial bid.

Headed by Pier Silvio Berlusconi, son of the late former Italian Prime Minister and TV tycoon Silvio Berlusconi, MediaForEurope has been steadily increasing its stake in ProSieben and planning a buyout as part of its strategy to establish a pan-European advertising-funded network.

In a statement, Berlusconi emphasized that the proposal is more industrial than financial, aiming to create a strong European group capable of global competition. He highlighted the benefits of combining markets, enhancing editorial offerings, and generating value for both viewers and investors.

ProSieben has expressed positive reception towards the improved offer and plans to review it formally before issuing a statement. Additionally, the German government has requested a meeting with Berlusconi, possibly indicating a favorable stance towards the ProSieben takeover.

Despite the optimism surrounding the deal, analysts remain cautious about the feasibility of the proposed vision. Francois Godard from Enders Analysis raised concerns about the ability to compete with global giants like Google and YouTube, emphasizing the challenges in the digital landscape.

While the takeover deal may bring some benefits such as ownership stability and management enhancements, the fundamental issue of digital strategy and competition with major players in the industry remains unresolved.