Berlusconi Family's MFE Eyes Pro Sieben Sat 1 Takeover Amid Share Price Surge

Media for Europe (MFE), the holding company of the Berlusconi family, saw its shares surge nearly eight percent on the Milan stock exchange as speculation mounts over a potential takeover of German broadcaster Pro Sieben Sat 1. Shares in Pro Sieben Sat 1 also rose approximately three percent, reflecting market optimism following the announcement from Czech major shareholder PPF about its exit from the broadcaster, which paves the way for MFE's acquisition. The German Journalists Association (DJV) has raised concerns regarding the potential takeover, urging MFE to preserve journalistic independence at Pro Sieben Sat 1, as well as to maintain job security within the broadcasting chain. Both MFE and Pro Sieben Sat 1 declined to comment on the ongoing developments. PPF, which has a 15.68 percent stake in Pro Sieben Sat 1, indicated on Wednesday that it had not managed to galvanize sufficient shareholder support to fulfill its objectives. PPF also mentioned its inability to continue its role as a strategic investor aimed at collaborating equally with MFE in boosting digital media platforms. As of mid-August, MFE reported holding 43 percent of the voting rights, which suggests it may possess a simple majority in Pro Sieben Sat 1's general meetings. PPF, previously the second-largest shareholder, attempted to double its stake to 29.99 percent in order to counterbalance MFE but only managed to secure 18.4 percent, which prompted its decision to exit. The outcome of a recent tender offer will determine MFE's operational involvement in Pro Sieben Sat 1, which has struggled with profitability and heavy debt. It remains to be seen how many shareholders will participate in the two-week extension to tender their shares to MFE, with expectations pointing to a total ownership approaching 60 percent by the conclusion of the process on September 4. A majority stake will allow MFE to incorporate Pro Sieben Sat 1’s revenues and profits into its financial statements, with a three-quarters majority necessary for a domination and profit transfer agreement, thereby granting access to greater financial resources. DJV federal chairman Mika Beuster expressed regret at the prospect of the takeover, stressing the need for independent and critical journalism in Germany. He cautioned against allowing new ownership to transform German private broadcasters into platforms for right-wing populism. The union has called on cultural state minister Wolfram Weimer to engage in dialogue with MFE's chief, Berlusconi, with a meeting planned for early September. Related Sources: • Source 1 • Source 2