Sky Europe is exiting the German-speaking pay-TV market with the sale of Sky Deutschland to RTL Group, marking a major shift in the European broadcasting landscape. The agreement, which is subject to regulatory approval, includes Sky’s pay-TV operations in Germany, Austria, and Switzerland, along with customer relationships in Luxembourg, Liechtenstein, and South Tyrol.
RTL Group will pay an initial €150 million in cash, with a variable consideration tied to the future performance of its share price. If triggered by Comcast (Sky’s parent company) within five years of the closing, the additional consideration could go as high as €70 per share, or a maximum of €377 million. RTL has the option to settle this amount in cash, RTL shares, or a combination of both. The company is currently exploring the possibility of acquiring treasury shares to manage this payment.
With this acquisition, RTL will significantly expand its footprint in the DACH region (Germany, Austria, and Switzerland), gaining access to 11.5 million paying subscribers. The combined business will bring together Sky’s premium sports rights, including Bundesliga, DFB-Pokal, Premier League, and Formula 1, with RTL’s strong presence in entertainment, news, and free-to-air television. The integration will also unite streaming platforms RTL+ and Sky’s WOW.
Thomas Rabe, CEO of RTL Group, said, “The combination of RTL and Sky is transformational for RTL Group. It will bring together two of the most powerful entertainment and sports brands in Europe and create a unique video proposition across free TV, pay-TV and streaming.” He added, “It will boost our streaming business, with a total of around 11.5 million paying subscribers, further diversify our revenue streams and make us even more attractive for creative talent, rights holders and business partners.”
RTL estimates the deal will generate synergy savings of €250 million annually within three years. Furthermore, the company stated that the partnership will create a stronger platform to compete with global streaming services operating in Europe.
Dana Strong, Group CEO at Sky, said, “Sky Deutschland has made significant progress over the past three years, delivering strong operational performance and reaching a record number of customers. The business is on track to achieve EBITDA break-even, reflecting the success of our turnaround plan.” She added, “Combining the strength of our brand with RTL builds on that momentum and opens up even greater opportunities.”
Additionally, the combined business aims to offer a broader German-language content portfolio, giving consumers access to an expanded lineup of live sports, original entertainment, and news. These offerings will span across RTL+, WOW, Sky, and RTL’s linear channels.
As part of the transaction, RTL will acquire the streaming service WOW and gain trademark rights to use the Sky brand across Germany, Austria, Switzerland, Luxembourg, Liechtenstein, and South Tyrol. This move ensures brand continuity for existing subscribers and strengthens RTL’s position in the region.
Leadership changes are also part of the transition. Barny Mills, CEO of Sky Deutschland, will remain in his role until the deal is finalized. Stephan Schmitter, current CEO of RTL Deutschland, will take over leadership of the combined business. The merged operations will maintain RTL’s headquarters in Cologne and Sky Deutschland’s base in Munich.
Notably, the pro-forma revenue for 2024 of the merged company was €4.6 billion, with 45% of that coming from subscription-based services. RTL Group’s total pro-forma revenue for the year reached €8.2 billion, representing a 30% increase from the company’s reported consolidated revenue of €6.25 billion. This acquisition marks the largest transaction in RTL Group’s history since its formation in 2000 and highlights its ambition to scale in both the pay-TV and streaming markets.