Deutsche Telekom AG successfully concludes the sale of the Baden-Württemberg cable TV network
Callahan Associates becomes majority shareholder of the regional company and also acquires DeTeKS shares Deutsche Telekom AG is pushing ahead with its strategy for the sale of its cable TV network. Following the conclusion of the contract with Liberty Media on 4 September, today saw financial control of the Baden-Württemberg cable region pass to Callahan Associates International LLC, the new majority shareholder. Callahan, which already operates the cable network in North-Rhine Westphalia as majority owner, is buying 60% of the shares in the Baden-Württemberg regional company. Three of the nine regional companies now have new majority shareholders.
Deutsche Telekom is also selling the activities of DeTeKabelService GmbH (DeTeKS) in Baden-Württemberg and North-Rhine Westphalia - in their entirety - to Callahan Associates. The buyer also has the option to purchase the remaining Deutsche Telekom shares in the regional companies of North-Rhine Westphalia (45%) and Baden-Württemberg (40%). In the past, DeTeKS served to enhance the Deutsche Telekom cable TV service by undertaking marketing and operating in-premises distribution networks (network level 4).
"I am delighted that we have also been able to agree with Callahan a purchase option for the remaining Deutsche Telekom shares in the North-Rhine Westphalia and Baden-Württemberg cable networks," stated Gerd Tenzer, Member of the Deutsche Telekom AG Board of Management, Production and Technology: "This underlines the intention of Deutsche Telekom to completely dispose of its cable TV activities."
"Baden-Württemberg is one of the most attractive cable regions in Germany," commented Richard J. Callahan, founder of Callahan Associates International. "We are very pleased that this region will form part of Callahan's broadband activities in Germany and that, with this move, we have reached another milestone in the successful evolution of our company."
There are currently around 2.2 million households (out of about 3.3 million which are passed by cable) connected to the cable TV network in Baden-Württemberg. In addition to over 30 analogue TV channels and up to 36 VHF radio stations, there are already around 100 digital TV channels available over the cable network.
On 4 September, Deutsche Telekom concluded negotiations for the sale of six of its nine regional cable TV companies with the signing of a contract with Liberty Media. Liberty Media is acquiring these regions in their entirety, as well as the activities of Deutsche Telekom Kabel-Services GmbH (DeTeKS) in these regions. Deutsche Telekom is also selling Media Services GmbH (MSG) to Liberty Media.