Russia’s Rostelecom has acquired a 25.33% stake in Digital Television, part of the All-Russia State Television and Broadcasting Company (VGTRK) with which it has established a joint venture.
Rostelecom announced last December that it would create a…
Russia’s Rostelecom has acquired a 25.33% stake in Digital Television, part of the All-Russia State Television and Broadcasting Company (VGTRK) with which it has established a joint venture.
Rostelecom announced last December that it would create a media JV with VGTRK, which produces pay-TV channels for cable and satellite broadcast.
The JV was formed from Rostelecom unit NKS-Media and Digital Television, both of which distribute various TV channels.
As part of the deal, the state-controlled telco agreed to acquire ordinary registered uncertified shares of Digital Television during an additional share issue, obtaining 25.33% of the voting shares.
The purchase was funded using its equity interest in NKS-Media and Rbs250m (US$3.6m) in cash. Rostelecom said the value of the assets it contributed to the JV amounted to more than Rbs1bn (US$14.5m).
Rostelecom president Sergey Kalugin said the company considered a number of options for developing its TV channels before deciding to consolidate them with VGTRK media assets.
“We believe they will generate greater value as part of a larger JV with VGTRK rather than attempting to develop our media business as a standalone entity.
“This will enable the combined company to obtain a much stronger position in the market, manage its costs more efficiently and enhance a leadership in quality of content.”
The Digital Television group distributes 13 themed TV channels and three VGTRK sport channels and is set to launch a new channel ‘Animal Planet’.
Meanwhile, NKS-Media operates and distributes six TV channels and an internet portal for parents.
Rostelecom and Tele2 Russia merged their mobile assets last year to create a new federal operator: T2 RTK Holding, which operates under the Tele2 Russia brand. The new player is the country’s fourth-largest mobile operator after MTS, MegaFon and VimpelCom.