Mediapro’s main shareholder, Hong Kong-based investor Southwind Media, is exploring a possible sale of its stake in the Spanish sports rights and broadcasting group, two people familiar with the matter told Reuters.
Southwind, which owns around 80% of Mediapro, is working with advisers to gauge buyer interest, the people said.
Mediapro, which operates in 31 countries, produces television series and films, such as “The Good Boss,” and has the rights to signal broadcasting for events like the Champions League final. It also provides audiovisual services.
Deliberations are at an early stage, and there is no certainty that a sale will proceed, said the people, who declined to be named because the talks are not public.
A spokesperson for Mediapro declined to comment on the deal. Southwind Media did not respond to several requests for comment.
A transaction involving Mediapro would follow a string of deals in the sector as private equity bet that soaring demand for new TV shows and films would continue. In one example a sale of All3Media, Britain’s largest TV production firm, is also underway, Reuters reported in September.
Southwind Media took an 80% stake in Mediapro in July 2022 after the pandemic hit the company’s business and forced it to restructure its debt.
It took over control from buyout firm Orient Hontai Capital, which had bought a majority stake in Barcelona-based Mediapro in 2017 for around 1 billion euros ($1.06 billion).
Mediapro’s remaining shares are split between UK-based advertising group WPP and Mediapro founders Jaume Roures and Tatxo Benet.
WPP, which has about a 9.5% stake, declined to comment. Roures and Benet also declined to comment.
The equity of Mediapro was valued at 1.265 billion euro at the end of 2022, according the annual report of its parent company SubCalidora 2. The company has 500 million euros of gross debt.
Mediapro posted earnings before interest, tax, depreciation, and amortization (EBITDA) of 189 million euros in 2022, up from 160 million euros a year earlier, according to a company press release.
The company has been diversifying from its traditional business of buying and selling broadcasting rights for sports events to producing TV content for streaming services like Netflix. It has also entered the world of e-sports by organising video game competitions.
Mediapro´s main source of core earnings remains its contract with La Liga to distribute Spanish football media rights internationally, according to rating agency Fitch.
“We expect the La Liga international contract to account for around 40% of company EBITDA in 2023,” the rating agency said last week.
Last year Mediapro bought three Fox Sports channels in Argentina from Walt Disney.