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Berlusconi Prepares to Assume Control over ProSiebenSat.1?

Mediaset, the Italian media conglomerate previously known as MFE MediaForEurope, is expanding its ownership of its German rival. Pondering the intentions of Silvio Berlusconi, its founder.

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Berlusconi Prepares to Assume Control over ProSiebenSat.1?

Sicilian Tycoon Silvio Berlusconi, Founder of Forza Italia and Majority Shareholder of MFE MediaForEurope, Makes a Play for ProSiebenSat.1 Media

Silvio Berlusconi, notorious for his dominance in Italian media and political spheres, is shaking things up again. Recently, MFE (formerly Mediaset), under his family's control, announced a move to secure an additional 4% of ProSiebenSat.1 Media, pushing their stake to a maximum of 29.01%. This strategic move, according to Reuters, could potentially trigger a mandatory takeover offer if they manage to own 30% of the voting rights.

Berlusconi's ambitions don't stop at ProSiebenSat.1. MFE is envisioning a grand, pan-European TV alliance as a countermeasure against the rising threat of streaming services. However, the Bavarian state government and ProSieben's new CEO Bert Habets, a former rival at RTL, remain wary of any increased Italian influence.

The Italians currently hold 22.72% of ProSieben, with options to gain an additional 6.29%. The stock has been on a downward spiral over the last 12 months, currently valued at around €1.6 billion. US investment bank Goldman Sachs has lowered its target price for ProSieben's stock to €6.50, citing reduced earnings per share forecasts for 2022 and 2023.

In the face of uncertainty, ProSieben's stock initiallyshows a slight decline but recovers somewhat. However, if the 50-day moving average is surpassed, it could signal better days for ProSiebenSat.1 from a chart perspective. BÖRSE ONLINE recommends purchasing ProSiebenSat.1 Media with a target price of €8.00, suggesting a stop-loss order at €6.37.

(With material from Reuters)

Conflict of Interest Disclosure: The CEO and majority shareholder of the publisher Boersenmedien AG, Mr. Bernd Foertsch, has directly and indirectly taken positions in the following financial instruments mentioned in the publication, which could benefit from any price movement resulting from the publication: ProSiebenSat.1 Media

  1. Berlusconi's MFE has announced its intention to secure a maximum of 29.01% shareholding in ProSiebenSat.1 Media.
  2. The strategic move by MFE could potentially lead to a mandatory takeover offer if they own 30% of the voting rights.
  3. ProSiebenSat.1's current stock valuation is around €1.6 billion, with Berlusconi's MFE aiming to increase its share.
  4. BÖRSE ONLINE recommends purchasing ProSiebenSat.1 Media with a target price of €8.00, despite the current uncertainty in the business.
MFE MediaForEurope, formerly known as Mediaset, is boosting its share in the German rival company. Could Silvio Berlusconi be strategizing a hostile takeover or an alliance for growth?

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