As you probably know the acquisition of Turkey’s biggest pay-TV operator Digiturk with more than 3 mio subs by beIN Media Group was kind of never ending story. Two weeks ago the new CEO of Digiturk has provided an update about the last status of acquisition and also some additional relevant info. The link is here in Turkish. Here I summarize the key point for you: (If you need further details please drop me an email)
- We are financially in loss due to Football rights: We pay more than 400 mio USD per year for the rights but we are in loss. The interest to football is declining and it’s quite difficult to arrive to 400 mio USD on the new tender which happens to be in January 2017.
- We came to an aggrement with beIN Media Group 6 months back. All the procedures about tax has been completed. We are now in last 2 months for the sales period. It will 100 percent of the shares and the total cost will be more than 1 billion USD.
- There are a number of uncertainties about the next tender for football rights. It will happen probably in January 2017 for the period for the season starting in Q3 of 2017. It is still not definitive who will be executing the tender process, Actually Digiturk is not that much who will execute the tender but they think that whoever makes it they need to get in touch with the potential participants and develop common understanding.
- We are working around 10-11 hours in order to broadcast any football game live together with more than 60 stuff. The advertisement revenue is the most on games between Fenerbahce and Galatasaray. ( around 5 mio TRY)
- The more competition for the championships the higher our revenue becomes. If one of the big 3 teams ( Besiktas, Fenerbahce and Galatasary) gives up early on the competition Digiturk’s revenue is badly affected. We had 3,4 mio customers out of which 1,5 mio are subscribers to football package.