CME broadcasting group, the majority shareholder of PRO TV, has announced the forming of a strategic alliance with one of the biggest media companies in the world, Time Warner (USA), which will have the American giant invest 241.5 million dollars in CME.
Time Warner will buy 19 million newly issued CME common shares, which account for an approximately 31% interest in the CME group, which operates several television stations in the Czech Republic, Romania, Slovakia, Slovenia, Croatia, Ukraine and Bulgaria.
CME and Warner Bros studios will also form a partnership to launch and operate new thematic television channels in current CME territories. These channels, some of which will be Warner Bros. branded, will feature international films and television series, including titles from Warner Bros.’ industry-leading library.
"I’m confident that this alliance with Time Warner will accelerate CME’s future development and take it to levels I could only dream of fifteen years ago. The combination of CME’s market leading positions and Time Warner’s brands will enhance the prospects of both companies as we work together," stated Ronald Lauder, the founder and main shareholder of CME, a company that posted more than one billion dollars in revenues last year.
Time Warner chairman and chief executive officer Jeff Bewkes said the transaction with CME was a unique opportunity to invest in – and partner with – the leading media company in Central and Eastern Europe. "While the region has been experiencing the impact of the global economic crisis, we believe CME is ideally positioned over the long term as Central and Eastern Europe returns to significant growth and the media sector in these countries continues to evolve. We believe this transaction will create value for the shareholders of both companies as we work with CME’s talented management team to achieve their business's full potential over time."
Adrian Sarbu, CME's president and chief operating officer, believes the success of CME is driven by the local management teams and their ability to create content that meets the expectations of the local audiences. "Time Warner and Warner Bros. are recognised leaders in the content business and have the skills and experience necessary to enhance the quality of our local programming."
CME television group was established by American businessman Ronald Lauder fifteen years ago, as he anticipated the openness and development of Eastern Europe after the fall of communism.
In Romania, Lauder partnered with Adrian Sarbu to launch PRO TV, which was to become the most successful media brand of the country. CME currently owns 95% in PRO TV SA, which operates PRO TV, Acasa, Pro Cinema, PRO TV International, Sport.ro and MTV Romania channels. The remaining 5% are held by Adrian Sarbu, the owner of the Media Pro group, which, among others, owns Ziarul Financiar.
Adrian Sarbu, the man who created PRO TV fourteen years ago, is now running the entire CME group. The US-based company is listed on NASDAQ in New York and on the Prague Stock Exchange, and its capitalisation reaches 423 million dollars.
Time Warner is the biggest media group in the world, whose current market value stands at 28 billion dollars.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
