TMG announces strategic cooperation with Talpa in radio, TV and OTT
Joining of forces fits with strategy of TMG to provide the consumer 24/7 with relevant content about various domains and via each desired medium type
- Cooperation further enhances the positions of TMG and Talpa in radio, TV and Over The Top (OTT)
- The cooperation gets shape through three initiatives:
- A strong Dutch commercial radio enterprise with an extensive qualitative offer;
- A TV-enterprise which is an important strategic step for TMG to establish a position in the Dutch TV-landscape;
- A platform for joint development of an OTT-offer
- As part of the cooperation TMG makes a cash-investment of 27 million euro.
- The transaction is subject to approval of the qualified supervisors and recommendation from the involved works council.
TMG announces the intention to enter into a strategic cooperation with Talpa, thus further enhancing its position in radio, TV and OTT. The steps by TMG fit with the TMG strategy to fully capitalize 24/7 on the quickly changing media requirements of consumers, with its (journalistic) content, strong brands and in its domains. This cooperation fits with the objective of TMG to enter into strategic partnerships with industry leaders.
In the radio sector a company is envisaged in which both parties will transfer their current radio activities. In the TV sector TMG aims to participate in the current interest of Talpa in SBS. Through the connection with the other activities of TMG this creates access to a complete cross-media offer. The cooperation with Talpa enables TMG to benefit from the creativity and the entrepreneurship of Talpa and the capability to transfer the TMG content from word to image. Moreover Talpa has much experience with the development of interactive, digital and cross-media formats. For Talpa the strength of TMG in the area of the development of (journalistic) content, strong brands and the daily reach of millions of consumers via its print, digital and OTT channels is of importance. Both parties provide channels, content, expertise and management capacities. As part of the strategic cooperation TMG delivers a cash-investment of 27 million euro. In the coming weeks the preliminary agreement reached by TMG and Talpa Holding will be developed further.
Geert-Jan van der Snoek, CEO of TMG about the cooperation: “Our strategy is clear. And we stated earlier that we will look for strategic partners to accelerate the implementation. Through this intended cooperation with Talpa we again take an important step in the realization of our ambition to provide the Dutch consumer more than ever before at any moment, 24/7, with relevant content via every desired medium. This joining of forces enables us to launch a unique offer in the radio market, with strong complementary radio brands. At the same time we make an important step in the Dutch TV-landscape that is very much on the move. And further we strengthen our starting position in our OTT-development that is of importance in view of our intention to launch two OTT channels this year. All in all this is a landmark deal for the new TMG as we have it in mind.”
John de Mol: “For me much is coming together with today’s news. As developer and producer of content we make a step which adjusts the position of the radio companies to the current time. In my opinion radio is the most interesting medium that exists, it is interactive, dynamic and always live. Its speed allows an advertiser to be on the radio within an hour, so to speak. Everybody probably sees me as a television man, but I started my career at the radio and there my heart still lies. Through the easing of the ownership limitation of Dutch commercial radio as per 1 January 2016, the way has been paved for the consolidation of the radio sector. We can now realize the dream to create a strong radio company and combine the radio brands Radio 538, Sky Radio, Radio Veronica and SLAM! into one radio company. Together we will consequently reach some 7.3 million listeners per week. More than ever we will be able to sharpen the profiles of the various stations so that they are maximally complementary and the total reach becomes larger.”
Strong Dutch radio company
With the intended combination of Sky Radio and Radio Veronica with Radio 538 and SLAM!, TMG put its radio activities ‘at arm’s length’. TMG maintains access to the radio platforms with a strategic interest and it keeps a position in the management of the combined company. With this cooperation TMG and Talpa enhance their possibilities in the field of consumer- and advertisers reach. The involved radio stations are complementary and jointly have a larger reach. This gives TMG much more possibilities to enable advertisers to reach relevant consumers with the content that is developed by all TMG brands and are distributed via the TMG platforms.
Within the radio company Talpa Holding will have an interest of 77.15% and TMG an interest of 22.85%. The TMG interest can still be increased, to a maximum of 25%, if certain targets are achieved.
Position in TV
The new to be established TV company gives TMG initially the possibility to obtain a strategic interest of 15% in the share that Talpa holds in SBS. For TMG this is relevant since also in the future this form of television will continue to play an important role in reaching consumers. TMG and Talpa further expect to strengthen the OTT-position with this strategic interest, in view of the access to the knowledge and capabilities of both Talpa and SBS with regard to respectively TV-productions and content.
TMG has, in parallel to the cooperation with Talpa Holding, also the intention to jointly with Talpa Media develop content and platforms that will further strengthen the OTT-proposition of TMG. This is for TMG of strategic value considering its plans to already launch this year at any rate two OTT channels.
In the coming months it will become clear which consequences the different forms of cooperation between TMG and Talpa have for the existing organizations. To this end a careful process will be arranged. TMG and Talpa expect to be able to provide more information in the middle of the second quarter.
The transaction is subject to approval of the qualified supervisors. The involved works councils have been informed in the meantime and have been asked for recommendation.
About Talpa Holding
Talpa Holding is a 33% shareholder in SBS Nederland, which operates four TV stations: SBS6, SBS9, NET5 and Veronica. Talpa Holding owns radio stations Radio 538, the market leader in the Netherlands, and SLAM! In addition, Talpa has a minority stake in Radiocorp, which operates the radio stations 100% NL and Radio 10.
Talpa Media, formerly part of Talpa Holding, has been acquired by ITV Plc and is in the meantime a separate business unit within ITV Studios.
About Telegraaf Media Group
Telegraaf Media Groep N.V. (TMG) is one of the largest media companies in The Netherlands, with strong brands like De Telegraaf, DFT, Telesport, Metro, Autovisie, Privé, VROUW; regional newspapers like Haarlems Dagblad and Noordhollands Dagblad; and the national radio stations Sky Radio, Radio Veronica and Classic FM. Furthermore TMG has dozens other brands and titles that focus on local news, entertainment or e-commerce. Via Keesing Media Group the company publishes international puzzle magazines and digital puzzles. TMG’s mission is to provide consumers 24 hours per day, 7 days per week with high quality, personalized and relevant content in the field of news, sports and entertainment, via all imaginable distribution forms.