MediaForEurope Advocates Changes at ProSieben Amid European Media Consolidation

MediaForEurope is pushing for changes at the German broadcaster ProSieben, including appointing new board members, amid its belief in the need for European media consolidation to compete against US competitors. MFE, majority owned by the family of the late Italian prime minister, holds a significant stake in ProSieben and owns channels in Italy and Spain. MFE denies planning a takeover but is advocating for reorganization and disposal of non-core assets at ProSieben, which has experienced share price decline and revenue drop. Despite opposition, MFE highlights the potential benefits of industrial integration between ProSieben and MFE in the future.

Key Takeaways

• MediaForEurope, backed by the family of the late Italian prime minister, is the largest shareholder in ProSieben with a near 30% stake and is advocating for changes at the German broadcaster.
• MFE's proposed initiatives for ProSieben include appointing new directors, exploring spinning off some assets, and disposing of non-core assets to improve the company's performance.
• Despite the boardroom battle, a representative for ProSieben declined to comment, and there are opposing views on MFE's actions, with analysts and proxy advisers recommending investors vote for the company's nominees.
• MFE's chief financial officer stressed the need for European media consolidation to combat competition from US giants and hinted at the potential for future collaboration between ProSieben and MFE.
• MFE denies planning a takeover of the German broadcaster and insists its campaign for changes at ProSieben is not part of a takeover drive.

Analysis

MediaForEurope (MFE), backed by the family of the late Italian prime minister, is orchestrating changes at German broadcaster ProSieben. This move reflects MFE's commitment to European media consolidation in the face of strong US competitors. The initiative involves appointing new board members and optimizing ProSieben's asset portfolio. The company's share price decline and revenue drop have prompted these actions. MFE's advocacy for industrial integration with ProSieben suggests a long-term strategy, potentially impacting the European media landscape. The unfolding boardroom battle and conflicting views on MFE's agenda may affect ProSieben's operations and shareholder sentiments, while also signaling larger shifts in the media industry.

Did You Know?

• MediaForEurope (MFE): Backed by the family of the late Italian prime minister, MFE is the largest shareholder in ProSieben, Germany's broadcaster, holding a near 30% stake. It is advocating for changes at ProSieben, including appointing new directors and exploring the disposal of non-core assets to enhance the company's performance.

• European Media Consolidation: MFE emphasizes the need for European media consolidation to compete against US competitors. This concept refers to the integration and collaboration of media companies within Europe to strengthen their competitive position in the global market, particularly against dominant US media giants.