BERLIN — Raking in fresh coin by the day, Munich-based Kirch Group has secured a guarantee from the Bayerische Landesbank to pay for its stake in pay TV web Premiere, according to German daily Suddeutsche Zeitung.
Bank will finance Kirch’s 45% ownership acquisition of Premiere that Kirch acquired in March from rival Bertelsmann for DM$1.565 billion ($861 million). The bank also has agreed to stand surety for the company’s credit.
Rumored not too long ago to be on the verge of bankruptcy, Kirch has seen its fate change drastically in recent months.
Reversal of fortune
Kirch just received $833 million through its new partners, Lehman Bros., Silvio Berlusconi and Saudi Prince al-Waleed bin Talal, who have taken altogether a 9.3% stake in the company’s core subsid, Kirch Media.
Kirch Group also acquired $277 million late last year from its sale to kidvid hotshots EM.TV of a stake in its children’s TV library. It also spun off the majority of its video rights to Kinowelt Medien and reportedly last summer received a loan of $666 million.
Kirch’s unit containing Premiere, in which it now holds 95%, is in need of coin to relaunch its digital pay TV business.
Kirch plans to invest a further $944 million in Premiere.