Pay TV quake: Sky Germany could be sold

• Sky is apparently for sale, and DAZN is said to be interested.
• The price quoted is remarkably low.
• However, a sale will not be that easy for antitrust reasons.

Sky Deutschland could sooner or later come onto the market as a sales mass. According to a report by the US business portal “Bloomberg”, the doubts of the parent company Comcast about the German pay-TV business are increasing. The price brought into play seems like a bargain. For “only” 1 billion euros one would be willing to sell Sky Germany.

There are no official statements about the current speculation. In the last quarter, Sky — the entire European business, mind you — took a €8.6 billion write-down on Comcast’s balance sheet, taking it €4.6 billion into the red. The less profitable Sky branches in Germany and Italy come into focus first when contemplating a sale as a result. Sky Germany could probably still be the most attractive for potential buyers from Germany and abroad.

Who is accessing the offer?

“Bloomberg” brought DAZN into play as the first candidate who might be interested. Actually, only the sports rights of Sky Germany should be attractive for the online provider, but these would have to be resold directly (at least partially) for antitrust reasons.

An interest from European players like Vivendi, Viaplay or MediaForEurope would make more sense. All three are not yet present on the German market (or, like MFE, only as shareholders) and, if they were to be incorporated into Sky Deutschland, they could enter the stage directly on a large scale instead of having to laboriously place their own product.

What about German prospective buyers?

It has remained extremely quiet here after the rumor made the rounds at the weekend. Apparently, the candidates who could afford it best prefer to stay under cover. Axel Springer, Bertelsmann (RTL) and Deutsche Telekom (MagentaTV) would at least have use for the portfolio of Sky Germany in addition to the necessary small change. However, as in the DAZN case, you have to take a close look at antitrust law.

Sky Deutschland difficult to place despite a very good portfolio

As long as Comcast doesn’t make any official moves to flesh out the rumours, speculation will probably continue to flourish here and there. On the other hand, it is no secret that pay-TV has always had a difficult time in Germany and is probably also the reason why no one is taking an offensive position and Sky Germany itself will continue to find it difficult to make great leaps – at least on own fist.

Also interesting…

A prospective buyer would probably have to be able to subsidize the pay-TV provider from other business areas. Just like Comcast actually does. The only question is: for how much longer?