Sky Deutschland has been sold to multinational media conglomerate RTL Group for an initial €150m.
The businesses are merging to create a brand with around 11.5 million paying subscribers.
The Sky Deutschland entity serves Germany, Austria, and Switzerland with customers in Luxembourg, Liechtenstein and the South Tyrol province of Italy with programming that includes live sports, exclusive series, films, children’s content, documentaries and shows.
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RTL Group operates broadcast, streaming, content and digital businesses with interests in 60 television channels, seven streaming services and 37 radio stations.
The group also has interests in radio stations in France, Germany, Spain and Luxembourg.
RTL Deutschland owns 15 TV channels and more than 10 magazines.
Under the deal, Sky’s premium sports rights – including Bundesliga, Premier League and Formula 1 – will be merged with RTL’s entertainment and news brands.
The purchase is the largest transaction for the RTL Group since its inception in 2000.
RTL will also use the Sky brand.
“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,” RTL Group’s chief executive Thomas Rabe said.
“Together, RTL and Sky will be in an even stronger position to invest in people, content and technology in Germany and in Europe to compete with the global tech and streaming players.”
The deal is subject to regulatory approval, which the companies expect will conclude next year.
In addition to the upfront €150m, Sky can trigger additional payment at any point within five years of the deal closing if RTL Group’s share price exceeds €41.RTL Group shares currently cost €31.65.
That payment is capped at €70 per share or €377m.
Sky News is owned by Sky, which is owned by Comcast, the US multinational media and entertainment business.
