ProSieben in deal with IBM
EmptyCANNES -- IBM and ProSiebenSat.1 have signed a 10-year, 200 million euros ($314 million) outsourcing agreement aimed at setting up a digital system to deliver TV programming to multiple platforms throughout Europe.
The deal, announced Tuesday, will see the computer giant acquire the IT division of ProSieben's production unit PSP along with its 170 employees.
IBM, with the U.K.'s Red Bee Media, had bid for all of PSP but failed to find a figure that suited ProSieben.
ProSieben said the deal will result in savings of about 50 million euros ($79 million) during the next decade and make the pan-European broadcaster faster and more flexible in delivering content. IBM will take over IT operations for ProSieben's four free-to-air German channels.