MTG media alliance targets digital opportunities
October 16, 2014
Colin Mann @ MIPCOM
International entertainment group MTG is teaming up with several other European media companies, including ProSiebenSat.1, Channel 4, and TF1, to identify investment opportunities in new digital businesses, creating what is described as a unique opportunity for start-ups who are looking to expand geographically. For MTG, it says the alliance will provide access to exciting investment opportunities in the digital space, through primarily media for equity or revenue arrangements.
The alliance creates a strong pan-European footprint that enables its members to invest in consumer-focused digital start-ups, such as classifieds, social media, e-commerce, and marketing companies that are looking to expand their geographical footprint. In return, the alliance members will provide the digital companies with certain volumes of advertising media.
MTG has a strong track record of using its powerful combined online and offline reach to build up successful international consumer brands such as CDON and Nelly
With linear and online presence in Scandinavia, the Baltics, Czech Republic, Hungary and Bulgaria, MTG is joined in this alliance by founding members ProSiebenSat1 (Germany), Channel4 (UK), TF1 (France), Dogan TV (Turkey) and TVN (Poland). Discussions with further potential members are ongoing.
“MTG has always been at the forefront of digital development, and partnering up with ProSieben and others will further accelerate the strong growth we already have in this space. We have done several media for equity deals over the years and know that they can be a very effective way to both accelerate the growth of these businesses and create shareholder value for MTG,” suggested Jørgen Madsen Lindemann, MTG President and CEO.
The alliance will operate on a non-committal referral basis, where the partners will refer investment opportunities to each other, and decide independently on a case by case basis whether an investment will be made and at what level.