German commercial broadcaster ProSiebenSat.1 has sold a web-hosting business, myLoc, to Italian cloud services provider WIIT for around €50 million
The move is seen as part of its diversification strategy and designed as part of its streamlining of its non-essential elements to focus more on its entertainment assets.
With five data centres and a business continuity site, MyLoc generated revenue of some €16 million with EBIT of €4 million last year and was thus a “nicely profitable business” in the words of analysts at Deutsche Bank.
However, the streamlining is part of ProSiebenSat.1’s well-communicated strategy to focus more on its core entertainment assets.
The bank says that at 12.5x EV/EBIT 2019, “the sale comes at an attractive multiple which we view as a positive. Based in Düsseldorf, MyLoc was a subsidiary of Virtual Minds which would now focus on core ad-tech solutions.”