By Elvira Pollina
COLOGNO MONZESE, Italy, Dec 11 (Reuters) – Pier Silvio Berlusconi, chief executive of European broadcaster MFE-MediaForEurope, said he would prefer Paramount’s Skydance rather than Netflix as a buyer for Warner Bros Discovery, arguing the move would boost competition in the streaming industry.
Paramount Skydance has launched a hostile bid worth $108.4 billion for Warner Bros Discovery, challenging a rival offer from Netflix, in a battle that is rattling the global entertainment industry.
“It would mean that instead of three major over-the-top players – Netflix, Amazon and Disney– there would be four, adding another competitor for them,” Berlusconi said at a press briefing at MFE’s headquarters near Milan late on Wednesday.
The growing dominance of global streaming platforms is eroding Europe’s traditional broadcasting industry, siphoning off viewers and advertising budgets.
Controlled by Italy’s Berlusconi family, MFE has been an active player in a wave of consolidation sweeping Europe’s broadcasting sector this year, as part of a strategy it sees as vital to withstand global video platforms by building an advertising-funded European champion.
The Milan-listed company, which runs TV operations in Italy and Spain, in September secured control of German rival ProSiebenSat.1 after a 1.4 billion euro bid. Recently it also bought a stake in Portuguese media firm Impresa.
The MFE CEO, the eldest son of the late Italian Prime Minister Silvio Berlusconi, struck a cautious tone over advertising sales in the final quarter of the year, a crucial moment for broadcasters as they seek to capture corporate advertising spending in the run-up to Christmas.
“We are not in a position to make forecasts because the economic and advertising outlook in Italy, Spain and Germany is challenging. It’s not a good quarter,” he said, adding he still expected to post an annual profit and to distribute a dividend similar to the past year.
Berlusconi said MFE will now focus on turning around ProSiebenSat.1 with a new business plan that includes cost cuts but no layoffs.
Asked about new potential deals in France and Britain, the executive said ideally both markets, where MFE explored acquisitions in the past, fit MFE’s strategy but the company needs to move forward step by step after making a big leap this year.
(Reporting by Elvira PollinaEditing by Keith Weir)
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