A Russian media company owned by business mogul Vladimir Potanin has bought the Russian outpost of MTV.
Potanin's Prof-Media, which already owns the TV3 and 2x2 channels in Russia, has acquired complete ownership of Wayfarer Media Limited, which owns both MTV Russia and VH1 Russia. They have bought out MTV International, which had a 53% stake in Wayfarer, as well as private equity firm Russia Partners and the European Bank for Reconstruction and Development, which owned 42% and 5% respectively, in a cash deal reportedly worth $360 million.
Prof-Media have probably paid slightly over the odds for the Russian division of the iconic music channel, though they will make immediate savings by integrating the operations of the MTV channels with those of their existing TV stations. As part of the deal, Prof-Media will get an exclusive licence to the MTV and VH-1 brands, programmes and websites in Russia.
Confirming the deal, Prof-Media CEO Rafael Akopov told reporters: "The MTV Russia acquisition is very complementary to our existing operations and exposes us to a new segment of the young and proactive audience, which is heavily in demand from top advertisers".
MTV Networks Vice-Chairman Bill Roedy said the deal would enhance MTV's reach in Russia, telling reporters: "When you have that sort of media company [ie Prof-Media], that partnership [ie the licensing deal with Prof-Media] gives us a much bigger scale and presence in the market. As Russia has quickly become more sophisticated, more complicated and even more competitive, this will help the business immeasurably".