UPC, a communications operator that is part of America''s UnitedGlobalCom Group, has acquired 50% in Focus Sat, a Romanian satellite TV provider, in a deal involving a share acquisition and raising the capital of the company, market sources say.
Experts put the market value of Focus Sat, whose services became available in December 2004, at 6 to 8 million euros (around 10 million dollars).
The remaining 50% in the company will stay with the founding shareholders - Cristinel Popa, Cristian Burci, Bogdan Dragoi, Adrian Cojocaru and Valeriu Ionescu. Together, Cristinel Popa and Cristian Burci initially held more than 50% in the company when it was first founded. "The initial investment is worth five million euros," Valeriu Ionescu said at the time the service was launched.
The company''s management will remain in place after the takeover, with Cristinel Popa staying on as chairman and chief executive, Valeriu Ionescu keeping his position as financial vice president and Bogdan Dragoi remaining in the role of development vice president.
UPC may choose to consolidate its holding in Focus Sat by acquiring the remaining 50%, depending on how the satellite TV market develops. At the moment there is one other player on this market, Digi TV, which was launched by RCS&RDS shortly after the launch of Focus Sat, the first DTH (Direct to Home) digital TV platform in Romania. In the five to six months since launching their services, Focus Sat and Digi TV have together attracted around 10,000 subscribers.
For its part, Astral, the other major player on the cable TV and Internet market, announced the launch of digital TV services for its subscribers at CERF 2005 (Computer and Electronics Romanian Fair) this April. "Astral Digital will at first target Astral cable TV subscribers from Bucharest only," an Astral release in April said.
UPC had already announced its own satellite TV services at the conference of the Association of Cable Communications in November 2004, with the next step having been the acquisition of an existing operator.
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