- Share this article on Facebook
- Share this article on Twitter
- Share this article on Email
- Show additional share options
- Share this article on Print
- Share this article on Comment
- Share this article on Whatsapp
- Share this article on Linkedin
- Share this article on Reddit
- Share this article on Pinit
- Share this article on Tumblr
COLOGNE, Germany – Media giant Bertelsmann is set to raise up to $2.1 billion when sells off a minority stake in RTL Group, Europe’s largest commercial broadcaster and owner of production giant FremantleMedia, producers of The X Factor and American Idol. Bertelsmann has set a price range of between €54-62 ($71-81) per share for a public offering comprising up to 25.5 million shares.
The share offering kicks off Thursday and will run through April 29. On April 30, RTL will being its first day of trading on the Frankfurt Stock Exchang. RTL Group today announced that it expected its first quarter operating profits (EBITA) to be up by a mid-to-high single digit percentage against last year’s figures and that the German TV ad market, which forms the core of RTL’s broadcast business, was up by low single digits in the first quarter. Other TV markets where RTL has channels however, including Belgium, France the Netherlands, Spain and Hungary, were down for the quarter and overall revenues for RTL Group are expected to be flat.
The RTL share sell is part of a major strategic shift by Bertelsmann. It is spearheaded by CEO Thomas Rabe who has said he plans to spend as much as $3.9 billion (€3 billion) on acquisitions over the next three years to reduce the German company’s dependence on slow growing European markets and boost business in Asia and Latin America as well as in digital and online industries. Following the sale, Bertelsmann will retain at least 75 percent of RTL Group.
For RTL, coming off a record year in which revenues hit $7.9 billion (€6 billion) and the company booked net profits of $782 million (€597 million), the Frankfurt listing should give it better access to shareholders in its biggest market.
Sign up for THR news straight to your inbox every day
More from The Hollywood Reporter
Andrew Lloyd Webber Says His Son Has Been Checked Into Hospice Care After His “Ghastly” Cancer Diagnosis
Christina Applegate Slams Candace Owens’ Criticism of Underwear Ad Featuring Model in Wheelchair: “My Rage Is Keeping Me Awake”
Justin Roiland Domestic Violence Charges Dismissed by Orange County District Attorney
The Stories Behind Whitney Houston’s Unreleased Gospel Songs: “She Left Healing Music for the World”