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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 10:07

Baltic business of MTG media holding might attract interest from Russia

BC, Riga, 01.12.2016.Print version
The Baltic business of Swedish media holding Modern Time Group (MTG) might attract interest also from Russia, the surveyed experts told LETA.

Media expert Andrejs Ekis said that the era of free TV is coming to an end and competition in the Baltics is very strong, which is why the reports about MTG’s plan to dispose of its Baltic business might be true. MTG, the last "big dinosaur" in the Baltics, is probably looking for an opportunity to exit this market, Ekis said.


In his words, the MTG Baltic business might be attractive to companies that could acquire the media company to broaden their range of services. Mobile operators, for instance, are currently offering flat rate tariffs and generate profit mainly by selling data, but they might want to expand their portfolio. U.S. investment fund Providence Equity Partners, which owns Bite Group, might be one such possible buyer.


Latvia’s Lattelecom landline operator and LMT mobile operator, on the other hand, might be too small for such an acquisition, Ekis believes. At the same time, interest from a possible Russian buyer with political background cannot be ruled out either, Ekis said.


Peteris Smidre, the former owner and chairman of Baltcom cable TV and Internet provider, said that such a deal might be interesting to companies that are already operating in this business, such as TV providers, like Lattelecom, that might want to broaden their product portfolio and raise turnover.


Smidre also believes that this is the right time for selling the business in the Baltic states, given the channel’s established position in the market and expected advertising revenue.

As far as politics are concerned, the Baltic business of MTG might attract interest from Latvia’s eastern neighbor, Smidre said.


Meanwhile, media expert Juris Kaza was skeptical about MTG’s intentions to sell its Baltic business, given that it is functioning fairly successfully, earning profit and is being constantly developed.


Lattelecom declined to comment on the reports about the MTG’s reported plan to sell its business in the Baltics.


As reported, Modern Times Group (MTG), the Swedish owner of Viasat, is searching for a new owner for its Baltic businesses, the price of which might be around EUR 100 mln, according to unofficial reports.


According to unofficial information MTG wants to sell its media channels in the three Baltic countries as one package and SEB has been authorized to look for a buyer. The price is nearly 100 mln euros and potential buyers are rather searched for outside of the Baltic countries.


MTG PR head Tobias Gyhlenius in a phone conversation with LETA declined to comment on the report, calling it rumors and speculation.


The sales of MTG in the Baltic countries, the Czech Republic and Bulgaria last year grew 11.8% to 2.53 bln Swedish kronor. The group's profit in the television segment in the region increased 44.7% to 288 mln kronor.


MTG's market share among 15-49-year-old viewers was 40.3%  in 2015, which is on the same level as in the previous year.


In Estonia MTG owns Viasat Eesti, TV channels TV3, TV6 and 3+ as well as radio channels Power Hit Radio and Star FM.






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