Nordic Entertainment Group (NENT Group), the Nordic region’s leading streaming company, has entered into an agreement with Telenor Group to combine its Viasat Consumer (satellite pay-TV and broadband-TV operations) with Canal Digital (satellite pay-TV). The combination will result in the parties each holding 50 percent of the shares of the new joint venture company and is expected to create substantial synergies and shareholder value, as well as provide an enhanced proposition for customers.
- The combination generates a scale Nordic player with combined net sales of approximately SEK 7.6 billion and 1,257k subscribers at the end of June 30, 2019.
- The combination is expected to yield annual cost synergies of approximately SEK 650 million, with full effect from 2022. Furthermore, there are expected to be substantial sales synergies arising primarily from Viaplay upsell opportunities and reduced churn in the joint entity.
- Integration and other related costs are expected to total approximately SEK 900 million, and will be reported in the new joint venture.
- The joint venture will be reported as an associated company in NENT Group and Telenor, and is expected to distribute available cash to its shareholders.
- The combination is subject to EU regulatory approval and expected to be completed during the first half of 2020.