MediaForEurope (MFE), largest investor in German commercial broadcaster, ProSiebenSat.1, has revealed it has proposed a vote is given to its shareholders on plans to spin off its dating and -ecommerce activities at the AGM on April 30.MFE, the broadcasting group that includes Mediaset Italy and Spain, holds a close to 30% stake in Germany’s ProSiebenSat.1. It said the motion aims to support the ProSiebenSat.1 executive board in the intended refocusing of ProSiebenSat.1’s core entertainment business.In a recent interview with newspaper Corriere della Sera, MFE CEO Pier Silvio Berlusconi called on the group to separate its dating and e-commerce activities with a split on the model of Vivendi’s plans, to give a better valuation to these assets.He indicated that MFE did not have any ambition to take over ProSiebenSat.1, but that MFE wanted to create a cross-border media combination that still enabled local players to deliver content suited to the local audience.The MFE boss added a combination would deliver synergies and present an opportunity to grow revenue, as well as developing a common technology platform for content distribution and advertising.MFE said the proposal come as part of its efforts to “accelerate the process of separating and refocussing” of its various business operations.ProSiebenSat.1’s executive board has continually urged the company to reprioritise its entertainment business, but according to MFE –”no material progress has been made to date.”In the interview, Berlusconi also warned that Germany’s ProSiebenSat.1 must change direction if it is to grow and should return to its core business. He explained ProSiebenSat.1’s contribution to MFE would be nugatory, compared to the €40 million it contributed in 2022, given the scale of the broadcaster’s losses.“It is now important for ProSieben to change course and return to investing in television,” he said.In a statement, MFE said, “The implementation of the spin-off would result in two separate listed companies operated by their own independent management teams. The shareholders would hold shares in both companies pro rata to their participation in ProSiebenSat.1.”“By presenting this motion, MFE intends to offer the Executive Board a solution to decisively execute its strategy and unlock the full value of the businesses for all shareholders. A conglomerate discount caused by very different and non-synergetic business activities being consolidated under the umbrella of a single listed company could be avoided by a spin-off and a separate stock-market listing of both legal entities.” the company added.
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