Hungary's MTelekom to buy out content providers

Deals

Magyar Telekom plans to buy out its partner IKO Production Kft and acquire a full stake in two domestic media content firms to become the leading interactive mobile service provider in Hungary.

Magyar Telekom said on Wednesday in a filing with the Budapest bourse that the deal, pending regulatory and shareholder approval, would split the activities of a holding operated by Magyar Telekom and IKO Production Kft.

The holding jointly controls media content providers IKO New Media Kft and IKO Content and Rights Kft as well as a 31% stake in M-RTL Zrt, Hungary's leading commercial television channel, a unit of Luxembourg-based RTL Group. The deal would grant full control for Magyar Telekom over the two content providers and Ft 2 billion ($12.33 million) in compensation in return for surrendering its stake in M-RTL, the statement said.

The two companies had revenues of over Ft 2.8 billion last year, it said. (Reuters)

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