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Possible monster merger in Germany with ProSiebenSat
8/07/2015


In Germany there are currently rumours about a merger between television group ProSiebenSat.1 and publisher Axel Springer.

Who are the players?
ProSiebenSat.1 is the biggest private broadcaster in Germany, with a market share of approximately 14%. It is active in 14 countries, with 30 television stations and 18 radio stations. They were active on the Belgian market until 2011 (Vier & Vijf; sold to Telenet).

Axel Springer is a publisher that we can call 'iconic', home to German powerhouses Bild and Die Welt. It is Europe's biggest newspaper publisher.
Belgians might know immoweb.be, as one of their outlets.

Why a merger?
Even though the two are German giants, they still want to capture more of the world.
An online strategy is perfectly fit for this.
The rise of disruptive online players (i.e. Netflix) has forced the hand of ProSiebenSat.1 and free online content has made life increasingly difficult for Axel Springer. Axel Springer decided to cut all editorial offices, save for the ones of Bild and Die Welt. The money saved, was then invested in online companies.

Why should we care?

Prof. dr. Karen Donders stated in the article that it will be difficult to see what the impact will be outside of Germany. "Big groups like LibertyGlobal or Discovery are taking their positions on the European market. They all have strong financial backing and we're stuck as spectators.", she said. "Our media regulators tend to look at the domestic market, while missing the bigger picture. We can't really talk about the impact in the long run. It's too difficult to tell. We need to continue our pluriformity and diversity."
She also said that it is very clear that they will be taking the digital route, a route that has become increasingly difficult to investigate, due to the enormous amount of players.


Source: De Morgen, July 8th, 2015

Created by Elias Van Dingenen on 8/07/2015