By Swann Collins, investor, writer and consultant in international affairs – Eurasia Business News. August 14, 2024. Article no 1168

Russian investor Ivan Tavrina’s Kismet has agreed to sell media assets, including the Muz-TV and U TV channels, as well as the Vyberi Radio radio station, to a group of investors including Media-Telecom (a joint venture between Rostelecom and NMG). The amount of the transaction was not disclosed.

Media-Telecom is engaged in the distribution of TV channels and content, as well as production. Thus, LLC owns the TV channels “Sapphire”, “Kineko”, etc., owns the rights to Russian and foreign films and TV series and operates in the advertising market.

Ivan Tavrin’s Kismet Capital Group has agreed with a group of investors to sell the Media1 group of companies, which includes the Muz-TV, Yu and Solntse TV channels, as well as the Vyberi Radio radio station, according to the message of the parties to the transaction received by RBC.

The amount of the transaction was not disclosed.

Among the investors is Media-Telecom, whose participants are the National Media Group, Rostelecom and others. It distributes TV channels and content.

Media-Telecom is a joint venture between Rostelecom and the National Media Group (NMG, which also owns the TV channels REN TV, STS, Domashny), created on a parity basis in 2018. The company specializes in the distribution of TV channels and content, and also provides services in the field of video production. Among its assets are the channels “Sapphire”, “Kineko”, “Udar”, Sci-fi, etc.

“All over the world, media holdings are consolidating, which makes it possible to create and monetize additional content in the struggle for the viewer and listener. Therefore, I am convinced that in today’s reality, the most correct decision would be to transfer the company to new hands and that the new owners of Media1 will bring more opportunities for all its assets and interesting work for the team of our companies,” Tavrin said in the KCG message.

According to the results of the first half of 2024, the share of Muz-TV in all cities of Russia over four years old was 0.6%, according to Mediascope data. The indicator of the TV channel “Yu” was similar. The children’s TV channel “Sun”, launched instead of Disney, which left Russia, had a share of 0.7%. For comparison, the children’s channel Karusel has a share of 2.6% over the same period, the entertainment channel TNT has 3.6%, and STS has 4.3%.

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Previously, Ivan Tavrin’s media assets also included the outdoor advertising operator Gallery. However, in 2023, the Russian businessman sold it to his main competitor, the Russ group. The deal was prepared for more than a year. Analysts estimated it at 7-10 billion rubles.

Ivan Tavrin notes that almost 23 years have passed since the acquisition of the first TV channel in Kazan by Media1, during which time the group of companies has united more than 200 regional TV channels and radio stations.

According to information on the Media1 website, the merger of assets into a group took place in 2019. At the time of the merger, the assets included Gallery, Vyberi Radio and the UTV holding, which managed the channels Muz-TV, Yu, Disney and the digital agency Divico.

UTV was founded in 2009 as a result of the merger of the media assets of Tavrin and his business partner Alisher Usmanov. They included the TV channels 7TV, Muz-TV, as well as several dozen regional radio stations. Until 2017, Tavrin developed the business together with Usmanov, later Usmanov’s share of just over 58% was transferred to his business partner. Representatives of USM Holdings then explained this by the non-core direction of the media direction for the company.

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In 2008, the Vyberi Radio group of companies was launched, uniting more than 55 radio stations in 20 cities. In 2020, the Group of Companies launched the GETRADIO radio advertising marketplace together with Main Agency. In 2022, 16 Gazprom-Media Radio radio stations in Perm, Yekaterinburg and Samara came under the management of Vyberi Radio. Last year, the Vyberi Radio Group of Companies took over the management of the assets of the Kuzbass Media Group – 12 radio stations in Kuzbass. Together with them, Vyberi Radio had 136 radio stations throughout Russia.

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In 2015, Ivan Tavrina paid $193.5 million, or about 14 billion rubles, for 75% of CTC Media, which includes CTC, Domashny and other entertainment channels, at the time of closing the transaction. In December 2018, the National Media Group and VTB bought this stake from Tavrin through Media Investments for 18 billion rubles ($269 million at the Central Bank’s exchange rate on the day of the transaction).

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© Copyright 2024 – Eurasia Business News. Article No. 1168.