Following those rumours last month that a deal was looming, MTV owners Viacom yesterday confirmed they had acquired over three quarters of the ownership of the company who run German music TV channel VIVA. The announcement followed the purchase of equity off fourteen of the networks shareholders, including the two biggest: Time Warner (30.6%) and Universal Music (15.3%). In a separate deal, Viacom also acquired half of VIVA Plus, previously a joint venture between VIVA and Time Warner.
Viacom now hope to bid for the remaining 24.2% of VIVA giving them complete ownership of the network. This purchase will be dependent on the remaining smaller investors and German financial regulators - though VIVA management are reportedly behind the deal and shareholders stand to make a 21% premium on shares if they sell, so complete ownership is a very real ambition for Viacom.
VIVA will be run by MTV Networks Europe, therefore bringing together Germany's MTV outlets - MTV and MTV2 Pop - with the rival VIVA and VIVA Plus channels.
Confirming the deal in Frankfurt, Viacom Co-President and Co-Chief Operating Officer Tom Freston told reporters: "The acquisition of VIVA is a significant strategic initiative that would dramatically expand our position in Germany - the biggest multichannel TV ad market internationally and a key driver of MTV's European growth plans. In bringing together MTV and VIVA as one family, our local management will create a more diverse and exciting programme offer for German TV audiences, while also tapping into the unique advantages of being part of our global network. We're excited that VIVA's leading shareholders and management team share our very positive vision for the combined company's future, and our commitment to investing in building both brands."