EM.Sport Media has agreed to buy a sizeable stake in Swiss media group Highlight Communications, parent of Germany’s largest film shingle, Constantin Film.
The purchase of up to 36.4% in Highlight stock will take place in two stages. EM.Sport will purchase a 25.1% stake in Highlight from Munich-based investor KF 15 for E66.4 million ($93 million) and 9 million shares in EM.Sport. This will give KF 15 an 11.5% stake in EM.Sport.
EM.Sport, formerly known as EM.TV, has an option to buy a further 11.3% in Highlight, which it may exercise in the first half of 2008, for $74.6 million.
By linking with Highlight, EM.Sport will become vertically integrated within the sports media sector, from rights management through the production of content to marketing across all media platforms.
EM.Sport CEO Werner Klatten said the acquisition was “a carefully planned step in light of our decision to focus our business entirely on the sports sector.”