Sky Deutschland: Acquisition by United Internet in progress

On December 12, 2022By Garmin Philip

Pay TV provider

The pay TV provider Sky is to be sold before the end of this year. The most promising candidate is United Internet, which is best known in Germany for its Internet provider 1&1.

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A few weeks after the pay TV provider Sky announced that it would increase the monthly price for existing customers, reports are mounting that the company’s Germany sector is to be sold before the end of this year. Like the portal DWDL reports that the parent company Comcast is aiming to sell the division before the end of this year.

The most promising customer is the company United Internet, which has become known in Germany primarily through the provider 1&1. The talks about the possible takeover have therefore been taking place for months – at the end of October Sky was valued at one billion US dollars. However, as insider sources from DWDL explain, it is considered unlikely that Comcast will actually earn that much money for Sky Germany, especially since extensive investments will probably be necessary after the sale.

In contrast to the markets in Great Britain or Italy, the lack of product range in this country is problematic: Unlike in the first two countries, Sky Germany has no broadband or fixed network offering, which leads to complete dependence on the TV market. The attempt to generate sales with hardware such as the Sky Soundbox, which has since been discontinued, or the Sky Glass smart TV, which has been postponed to 2023, is also seen as having failed.

Accordingly, Sky Germany has to ensure sales with the paid subscriptions, which in view of the increasing competition with regard to the allocation of rights – the streaming services DAZN and Amazon Prime, for example, were able to secure a large number of Champions League games in football and some broadcasts of the securing the Bundesliga – has become a difficult undertaking.

For this reason, United Internet is also the most promising candidate for a takeover of Sky Germany: In contrast to Comcast, the company has already been able to set up a mobile and broadband network in Germany and can offer the complete package. It remains to be seen whether the speculation is true and what the future offer from Sky Germany could look like – an official statement from the two parties involved is still pending.

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