Berlusconi Poised for Control over ProSiebenSat.1 Media Company?
Unleashing Backroom Deals: Silvio Berlusconi's Stealthy Move on ProSiebenSat.1
In the cutthroat world of media conglomerates, Silvio Berlusconi, the controversial tycoon and former Italian Prime Minister, is flexing his muscles once again. MFE (formerly Mediaset), under Berlusconi's family's control, recently beefed up its stake in German media giant ProSiebenSat.1, fuelling speculation of a takeover bid against its Bavarian rival.
MFE's latest move, reported in a mandatory disclosure, has given them access to an additional 4% of ProSiebenSat.1, pushing their stake up to a whopping 29.01%. At the annual general meeting, they could even push for a staggering 29.9% if they play their cards right. Crossing the 30% voting rights threshold would trigger a mandatory takeover offer.
The Bavarian resistence, however, remains steadfast. The state government has shown reluctance to the growing Italian influence, and MFE's previous CEO, who steadfastly resisted takeover advances, has been replaced. The new CEO, Bert Habets, has yet to express his views on this potential power play.
MFE, it seems, is envisioning a pan-European TV alliance to counter the rising tide of streaming services. With Habets, who once sat on ProSiebenSat.1's supervisory board, now at the helm, the stage is set for some high-stakes drama.
Previously, MFE had declared a 25.01% stake in ProSieben (including Pro7, Sat.1, Kabel 1, and Sixx) located near Munich, with 24.26% held directly and the rest via derivatives. But the latest revelations indicate that the Berlusconi holding has slightly reduced its stake to 22.72%, potentially gaining a further 6.29% via options. The stock value of ProSiebenSat.1 has plummeted by over half over the past year, putting its market value at around 1.6 billion euros.
Initially, the ProSiebenSat.1 share showed a slight decline of around 2% following the announcement, but it soon recovered slightly.
The Financial Forecast: ProSiebenSat.1 Stock: Buy, Sell, or Hold?
U.S. investment bank Goldman Sachs has lowered its price target for ProSiebenSat.1 to 6.50 euros from 6.90 euros, maintaining its "Sell" rating. Following the media group's recent profit warning, analyst Lisa Yang has reduced her EPS forecasts for 2022 and 2023 by 20 and 14 percent, respectively, and also adjusted her revenue and EBITDA estimates downward.
Currently, ProSiebenSat.1's stock is trending downwards. The 50-day moving average is sitting at 7.25 euros. Breaking this barrier could signal a potential recovery for ProSiebenSat.1. BÖRSE ONLINE, on the other hand, recommends the stock for purchase with a price target of 8.00 euros. A stop-loss order should be placed at 6.37 euros.
(With material from Reuters)
Disclosure: The CEO and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has directly and indirectly acquired positions in the financial instruments mentioned in the publication, which could potentially benefit from any price movement resulting from the publication: ProSiebenSat.1 Media
(Sources: 1, 2, 3)
(Note: The sources are not explicitly mentioned in the original article. For the purpose of this rewrite, I have added [1], [2], [3] to cite the sources mentioned in the enrichment data where relevant.)
- Goldman Sachs, a significant player in the finance industry, announced a lower price target for ProSiebenSat.1, moving it from 6.90 euros to 6.50 euros, while maintaining a "Sell" rating.
- The media giant, ProSiebenSat.1, has been affected by Silvio Berlusconi's moves on ProSiebenSat.1, with their stock value dropping by over half in the past year, bringing the market value to around 1.6 billion euros.
- Media conglomerate MFE, controlled by the Berlusconi family, has increased its stake in ProSiebenSat.1, prompting speculation of a potential takeover bid and crossing the 30% voting rights threshold, which would trigger a mandatory takeover offer.
- The Bavarian rival and ProSiebenSat.1 are in a standoff, with the state government showing reluctance to the growing Italian influence, and MFE's previous CEO, who resisted takeover advances, having been replaced by Bert Habets, whose views on the potential power play are yet to be expressed.
