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RTL Group to Explore 'Strategic Alternatives' for Vancouver's BroadbandTV Including IPO or Sale - Could Command $1 Billion+
Thursday, February 2, 2017Company Profile | Follow Company
Vancouver, BC, February 2, 2017--(T-Net)--RTL Group announced today that it has decided not to exercise the call option for the remaining 49 per cent shareholding in Vancouver-based BroadbandTV and to explore, jointly with the minority shareholders of BroadbandTV, all 'strategic alternatives' for the company.
The parties plan to mandate investment bank Liontree to lead this process.
BroadbandTV operates a Multi-Platform Network with 85,000 network partners amassing 22 billion views per month.
Its content creators span a number of key media brands and verticals including: TGN, the largest and most engaged gaming video network; Opposition, the largest hip-hop music network; leading Electronic Dance Music (EDM) network, WIMSIC; leading kids & family network, HooplaKidz and Outspeak, the next-generation citizen journalism brand in partnership with The Huffington Post.
RTL Group, a leading European entertainment network, and Vancouver-based BroadbandTV announced in 2013 that they formed a strategic partnership and RTL Group made an initial investment of €27 million (US-$36 million), which gave it a 51% stake in the company at that time.
RTL Group owns numerous TV and radio stations cross Europe and is owned by the Bertelsmann media company.
Variety and the Globe and Mail (as well as RTL Group in a press release) are all now reporting that the company has decided to pass on its option to acquire the remaining 49% of BroadbandTV, and will instead all explore 'strategic alternatives' for the company.
According to Variety, possible scenarios for BroadbandTV include a sale of the company, adding additional outside investors, or an initial public offering.
The Globe and Mail has written an excellent and extensive article on this potential transaction and is reporting that BroadbandTV's 37-year-old founder and CEO, Shahrzad Rafati believes the company is worth “definitely 10 figures" (i.e. $1 Billion +).
Exciting times may be ahead for this company as it works through this process.
About BroadbandTV
BroadbandTV is an innovative media and technology company that drives success for online video creators by leveraging its premium media brands, proprietary technology, and massive online reach. BroadbandTV operates the world's largest Multi-Platform Network with 85,000 network partners amassing 22 billion views per month. Its content creators span a number of key media brands and verticals including: TGN, the largest and most engaged gaming video network; Opposition, the largest hip-hop music network; leading Electronic Dance Music (EDM) network, WIMSIC; leading kids & family network, HooplaKidz and Outspeak, the next-generation citizen journalism brand in partnership with The Huffington Post. The business recently unveiled NBA Playmakers, the world's premiere basketball video network in partnership with the NBA, geared to reach targeted and engaged audiences from sports, to how-to and fitness, and basketball culture.
BroadbandTV has developed some of the most advanced and innovative technologies in the online video space including: VISO Catalyst, a creator platform for discovery, engagement, collaboration, and actionable insights; VISO NOVI, a web application designed to detect, track and measure fan activity associated with content owners videos and VISO Magnetics, an end-to-end platform that connects content creators with brands & advertisers, providing a scalable marketing and advertising strategy around both reach and branded entertainment campaigns. In June 2013, the leading European entertainment network RTL Group acquired a majority stake in BroadbandTV. Both companies also formed an ongoing strategic partnership to accelerate the global growth strategy of BroadbandTV. RTL Group's initial investment of US-$36 million is part of a planned series of investments in the company. www.bbtv.com
About RTL Group
RTL Group is a leader across broadcast, content and digital, with interests in 60 television channels and 31 radio stations, content production throughout the world and rapidly growing digital video businesses. The television portfolio of Europe's largest broadcaster includes RTL Television in Germany, M6 in France, the RTL channels in the Netherlands, Belgium, Luxembourg, Croatia, Hungary and Antena 3 in Spain. The Group also operates the channels RTL CBS Entertainment and RTL CBS Extreme in Southeast Asia. RTL Group's families of TV channels are either the number one or number two in eight European countries. The Group's flagship radio station is RTL in France, and it also owns or has interests in other stations in France, Germany, Belgium, the Netherlands, Spain and Luxembourg. RTL Group's content production arm, FremantleMedia, is one of the largest international creators, producers and distributors of multi-genre content outside the US. With operations in 31 countries, FremantleMedia's comprehensive global network is responsible for more than 10,000 hours of programming a year and distributes over 20,000 hours of content worldwide. Combining the catch-up TV services of its broadcasters, the multi-channel networks BroadbandTV, StyleHaul and Divimove as well as FremantleMedia's 260 YouTube channels, RTL Group has become the leading European media company in online video. RTL Group also owns a majority stake in the programmatic video advertising platform SpotX.
For more information, please visit RTLGroup.com
Contact
Media Investor Relations
Oliver Fahlbusch
Corporate Communications
Phone: +352/2486 5200
oliver.fahlbusch@rtlgroup.com
Andrew Buckhurst
Investor Relations
Phone: +352/2486 5074
andrew.buckhurst@rtlgroup.com
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