The deal will see TVN and Canal Plus merging their pay TV activities to create a common DTH platform with a subscriber base in excess of 2.5 million. TVN is expected to combine its subsidiary ITI Neovision with Cyfra Plus in exchange for a significant minority stake in the combined entity.
“By combining the Polish pay TV assets of TVN Group and Canal Plus Group, TVN Group continues to meet the challenges of a converging media world and its premium offering will deliver the best available entertainment experience to its customers,” ITI said in a statement. “The TVN Group and the combined pay TV platform will plan to enter into partnership agreements in content development, production and exploitation in the Polish market.”
In addition, Canal Plus is to acquire a significant minority stake in N-Vision, the parent company of Polish Television Holding, which holds a 51% stake in TVN. Under the deal, Canal Plus has been granted an option to acquire the remaining portion of the controlling stake in TVN from ITI.
French group Canal Plus operates the Cyfra Plus pay TV platform in Poland, which has 1.5 million subscribers, while TVN operates rival pay TV service ‘n’.