Telia

Telia
acquires
Bonnier Broadcasting

July 2018

Combining the Nordic’s leading mobile and fixed networks with the region’s most successful commercial media house

“Together with TV4 we will serve customers and viewers in new ways and create new business opportunities. We have great respect for our new role as a media owner and have a clear view of how we will maintain the editorial integrity of the business going forward. I look forward to welcoming some of the most talented TV-content producers in the Nordics to Telia.”

Johan Dennelind, President and CEO of Telia

Transaction Value

SEK 9.2bn

People employed by Bonnier Broadcasting

1,200

LTM Revenues as of 31 March 2018

SEK 7.5 bn

LTM EV/EBIT as of 31 March 2018

15.4x / 7.7x incl syn.

Headquarters

Stockholm, Sweden

Bonnier Broadcasting: Sweden and Finland’s largest broadcasting group

Bonnier Broadcasting, who owns TV channels in Sweden and Finland, is part of the media company Bonnier, and is both a business area and a parent company for TV4, C More and Finnish MTV.

Bonnier Broadcasting, Sweden and Finland’s largest broadcasting group, is a leader in the development of video content and digitalisation of the television industry.

Telia: serving customers and viewers in new ways and creating new business opportunities

This acquisition will combine Telia’s leading mobile and fixed network in the region with one of the most successful commercial media-houses in the Nordics.

TV and content have been an important part of Telia’s strategy since 2014 and the company has successfully established a TV-business currently serving approximately 1.8 million households. Last year the exclusive rights to the Finnish ice hockey League, Liiga, were acquired. The acquisition of TV4, C More and MTV is of strategic importance to Telia Company as it strengthens the company in the fast growing area of video content consumption.

Telia is emulating its US and European peers who have added content to their traditional phone services to combat powerful digital rivals like Netflix and Amazon. Like AT&T’s deal to buy Time Warner in the States, Telia now becomes both a distributor and producer of content with the acquisition of Bonnier Broadcasting.

The transaction amounts to SEK 9.2 billion on a cash and debt free basis, equivalent to an EV/EBIT multiple of 15.4x, based on last 12-month performance as per March 31 2018, or 7.7x including full run rate of synergies.

The transaction is subject to regulatory approvals and is expected to be completed during the second half of 2019.

Stella EOC acted as financial co-advisor to Telia.