Swedish broadcaster Modern Times Group (MTG) is no longer interested in acquiring Norwegian DTH firm Canal Digital, despite a decade of speculation that they could merge.
MTG has publicly ruled out interest in buying the asset, which is owned by…
Swedish broadcaster Modern Times Group (MTG) is no longer interested in acquiring Norwegian DTH firm Canal Digital, despite a decade of speculation that they could merge.
MTG has publicly ruled out interest in buying the asset, which is owned by Norwegian telecoms giant Telenor. According to MTG CEO Holger Albrecht, the world has moved on since it initially pursued the group more than ten years ago, with developments such as its OTT solution Viaplay now taking centre stage.
MTG and Telenor declined to discuss how close they had come to securing a merger agreement.
Previously, industry spectators had pointed to Canal Digital merging with MTG’s Viasat Broadcasting pay-TV platform, which also serves the Nordic region.
However, MTG, which is currently present in 35 countries, is still very keen to pursue other growth opportunities. The company is particularly interested in expanding further in sub-Saharan Africa and in Eastern Europe.
A source close to the company said it was specifically on the look out for content production businesses to bolster its portfolio of services.
The group has been acquiring stakes in these types of businesses in recent months, most recently Paprika Latino, which serves Central and Eastern Europe.
MTG announced in June that it had acquired a 53% stake in Paprika for an undisclosed sum.
At the time, the company said the acquisition was the first step in a broader strategic shift for its MTG Studios content unit. It said this shift would see it expand its footprint and reach to include companies that specialise in a wide range of genres, from reality TV to factual documentaries.
Announcing the Paprika deal on 14 June, Albrecht said: “The acquisition of the majority stake in Paprika Latino provides us with a significant boost to our content production and acquisition capabilities in Eastern Europe.
“It is also an important milestone in our broader content strategy, and we are focused on the expansion of MTG Studios’ reach and footprint across our territories. Content is at the very heart of what we do, and by strengthening our in house content production capacity we will be able to provide our viewers with an even wider range of exciting programmes and formats.”
