BSkyB to acquire Sky Italia and a 57.4% stake in Sky Deutschland

sky summer_logoBSkyB is to acquire 21st Century Fox’s 100% stake in Sky Italia and its 57.4% interest in Sky Deutschland.

The total consideration for the acquisition of Sky Italia is £2.45 billion with approximately £2.07 billion to be paid in cash and the balance to be satisfied through the transfer of BSkyB’s 21% stake in National Geographic Channel International to 21st Century Fox at a value of £382 million.

The acquisition of 21st Century Fox’s shareholding in Sky Deutschland is for a consideration of £2.9 billion in cash, valuing Sky Deutschland at €6.75 per share.

The transactions are subject to regulatory and independent shareholder approval.

Jeremy Darroch, BSkyB’s Chief Executive, said: “This transaction will create a world-class, multinational pay TV business with enhanced headroom for growth and immediate benefits of scale. The three Sky businesses are leaders in their home markets and will be even stronger together. By creating the new Sky, we will be able to use our collective strengths and expertise to serve customers better, grow faster and enhance returns.”

The acquisitions will take BSkyB from 11.5 million customers to 20 million. On an aggregated basis, group revenues will increase from £7.6 billion for the standalone BSkyB to £11.2 billion.

21CFFollowing the agreement to acquire 21st Century Fox’s 57.4% stake in Sky Deutschland, BSkyB has announced that it will launch a voluntary cash offer to Sky Deutschland’s minority shareholders at €6.75 per share. There is no minimum acceptance condition as BSkyB believes it can realise the advantages of closer collaboration with Sky Deutschland and support its continued growth and development with the 57.4% stake it is acquiring through this transaction.

Subject to the number of Sky Deutschland minority shareholders that accept the offer, the total cash consideration overall may be up to approximately £7.0 billion.

The consideration will be funded in part by the proceeds of a placing of 156.1 million new Ordinary Shares representing approximately 9.99% of the issued share capital of BSkyB. 21st Century Fox has irrevocably undertaken to participate in the placing pro rata in order to maintain its holding in BSkyB at the current level of 39.14%. The remaining consideration will come from a combination of new debt facilities and cash resources.

In addition to the enhanced growth profile of the enlarged group, BSkyB expects to be able to realise £200 million of run-rate cash synergies by the end of the second full financial year after completion, with further additional synergies expected in subsequent periods. The significant majority of synergies are expected to arise from the UK and Italy being the two businesses with larger and more similar direct to home operations. Other than the acquisition of acquired programming rights, cost savings are expected across most areas of the business including the production of live events, commissioning, back office IT systems, rationalisation of suppliers and, over time, in product and set top box development. Management’s current estimate is that the costs to achieve these synergies will be around £150 million.

 UK & Germany & Italy

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Kelsey Media acquire Outdoor Fitness from Bauer Media

The Outdoor Fitness editorial staff have transferred to Kelsey. They will be based at Kelsey’s Peterborough office. The Editor is Jonathan Manning, the Deputy Editor Marc Abbott and the Art Editor is Mark Tucker. Lauren George will manage the ad sales operation in conjunction with her existing title, Running fitness, based out of the Cudham office.

UK, Peterborough, Cambridgeshire

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Kelsey Publishing acquires Auto titles and Triathlon Plus from Future for £2.1M

kelsey_mastFuture plc has exchanged contracts to sell a portfolio comprising its Auto titles and Triathlon Plus to Kelsey Publishing Limited for a total initial consideration of £2.1m, comprising £1.8m in cash and £0.3m of magazine subscriptions deferred revenue to be retained by Future. In addition, deferred consideration of up to £0.8m is payable by 30 September 2015 based on revenue performance. Completion is scheduled to occur by the end of August 2014. The net proceeds of sale will be used to reduce the Group’s external borrowings.

future smThe Portfolio includes the following: Fast Car, Fast Ford, Classic Ford, Classics Monthly, Total Vauxhall, Mini Magazine, Triathlon Plus, Classic Ford Show, Ford Fair, Japfest, Japfest 2: The Evolution, Performance Vauxhall Show, TRAX: The Ultimate Performance Car Event and associated websites.

In the year ended 30 September 2013 the Portfolio generated revenue of £5.0m and pre-tax profit (post allocation of central Group and corporate costs) of £0.3m. The gross assets of the Portfolio as at 31 March 2014 were approximately £0.3m.

UK, London & Cudham, Kent

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Kantar invests in automated market research business ZappiStore

KantarKantar, WPP’s wholly-owned data investment management business, has invested in ZappiStore Limited, an automated market research, based in London. The terms of the deal were not disclosed.

Launched in 2013, ZappiStore offers software applications which provide automated data collection and analytics through a self-service platform.

The company currently operates in nine countries with plans to expand into 11 additional markets in the near future. ZappiStore’s clients include five of the top 10 global consumer goods companies.

UK, London

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New Media Investment Group acquires The Providence Journal for $46M

new media investmentNew Media Investment Group Inc. is to acquire The Providence Journal, a daily newspaper serving the metropolitan area of Providence, Rhode Island, for $46.0 million in cash from A. H. Belo Corporation. Under the deal, which includes “substantially all of the assets” of  The Journal, New Media will acquire the newspaper’s production facility on Kinsley Avenue but not The Journal’s headquarters at 75 Fountain St., nor the downtown parking facilities and other property A.H. Belo owns.

The deal is expected to close in the third quarter of 2014.

Journal_IconThe Providence Journal is one of the oldest print publications in the United States and was first published in 1829. It has a daily circulation of approximately 72,000 and 96,000 on Sunday.

It was independently owned until A.H. Belo Corporation bought The Providence Journal Company in 1996 for $1.5 billion, when both corporations owned newspaper and television operations.

Later, Belo split into two companies, one called Belo Corporation, which operated the television stations, and the other, A.H. Belo Corporation, which operates the newspaper organizations.

A.H. Belo announced in December that it had hired a consultant to “explore a potential sale” of the news organization so it could concentrate on its businesses in Texas.

Michael E. Reed, New Media’s President and CEO commented, “We are very excited to announce the proposed transaction with A. H. Belo. The Providence Journal is one of the most established and prominent newspapers in the United States and is the preeminent provider of local content to the greater Providence marketplace. In addition, its high quality editorial standards have resulted in four Pulitzer Prizes for the newspaper. We are very excited to welcome the paper, its employees and the community into the growing New Media family. We deeply admire the great work that has been done in Providence under the stewardship of A. H. Belo, and look forward to continuing that tradition.

“We are also enthusiastic about the opportunity to expand our digital services business, Propel, with this acquisition. There are approximately 28,000 small and medium sized businesses in the Providence market and the newspaper has a strong, in-market local sales force of approximately 40 representatives. Further, with only about 25% of revenue coming from local print advertising, we believe this acquisition further evolves New Media’s revenue mix towards stable to growing revenue categories.

“Over the past 10 months, New Media has entered into agreements to acquire approximately $151 million of local media assets at an average purchase price to EBITDA multiple of 3.3x. We are very excited about our progress year to date and, as we look forward to the second half of the year, remain focused on executing on our strategy which we believe will drive substantial shareholder returns.”

USA, New York, NY & Providence, RI

LinkedIn to Acquire Bizo

linkedin-iconLinkedIn is to acquire Bizo. Bizo offers technology and products that enable measurable display and social advertising programs specifically focused on professional audience segments. Based in San Francisco, CA, Bizo was founded in 2008 by Russell Glass, Bryan Burdick, Donnie Flood, Mark Dye, Lee Byrne and Yonatan Stern.

The transaction is valued at approximately $175 million, subject to adjustment, in a combination of approximately 10 percent stock and approximately 90 percent cash. The acquisition is expected to close during the third quarter of 2014.

bizo-logo-hdrB2B marketers use Bizo to target prospects within professional segments, and nurture them at every stage of their sales and marketing funnel. Fueled by proprietary data management and targeting technology, their platform enables precise and measurable multi-channel marketing programs. Since 2008, the company has been helping brands meet their marketing objectives by getting the right message in front of the right audiences on the web.

“It’s exciting for us to bring Bizo’s expertise and technology into our ecosystem,” said Deep Nishar, LinkedIn’s SVP of Product and User Experience. “Our ability to integrate their B2B solutions with our content marketing products will enable us to become the most effective platform for B2B marketers to engage professionals.”

“We have been a LinkedIn partner for a while now and it became clear that our respective missions and cultures are really well aligned,” said Russell Glass, Bizo’s Co-Founder & CEO. “I couldn’t be more thrilled that we are coming together to accelerate our ability to reach professional audiences, nurture prospects, and acquire customers in truly powerful ways.”

David Thacker, Vice President of Product, blogged in more detail about the acquisition on the LinkedIn Marketing Solutions blog. For Bizo’s perspective, a blog by CEO Russell Glass can be read on the Bizo Blog.

USA, Mountain View, CA & San Francisco, CA

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Yahoo to acquire Flurry

YahooYahoo has acquired Flurry. Flurry is a mobile analytics, monetisation, and advertising company founded in 2005. The company develops and markets a platform for analysing consumer interactions with mobile applications, solutions for marketers to advertise in-apps, as well as a service for applying monetisation structures to mobile apps. The Flurry team will remain in their present locations.The terms of the deal were not disclosed.

flurryYahoo said that the acquisition will mean Flurry will have resources to speed up the delivery of platforms that help developers build better apps, reach the right users, and explore new revenue opportunities. Together, the companies can make mobile experiences better through products that are more personalised and more inspiring.

USA, Sunnyvale, CA & San Franciso, CA

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