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Regulator, competition authority still examining take-over deal
"unwanted changes"

Czech Media Invest accepted in January a bid for the Polish Eurozet radio broadcasting assets from publisher Agora and a consortium of investors, SFS Ventures. Eurozet, comprising several radio stations, was part of the Lagardère Active Radio eastern and central European assets acquired by Czech Media Invest last year. None of this came as a complete surprise; private equity investors always have their ears up for profit making deal.

Also with their ears up are loyal supporters of the Law and Justice (PiS) party, who occupy virtually all government offices and agencies in Poland. When Czech Media Invest let it be known it was shopping the deal last December most Polish media operators shied away, knowing full well the arch-nationalist PiS would raise a stink about any potential buyer not firmly aligned with party orthodoxy. PiS supporting Fratria, publisher of right-wing weekly Sieci and website wpolityce.pl, seemed interested but it, too, backed away. (See more about media in Poland here)

Agora publishes leading daily newspaper Gazeta Wyborcza and operates the TOK FM radio station, both lifting a critical eye to the PiS leadership. SFS Ventures was established in Prague, Czech Republic by Sourcefabric and Media Development Investment Fund (MDIF), both supporters of independent journalism. That philanthropist George Soros provided start-up funding to MDIFs predecessor Media Development Loan Fund 25 years ago set off those in Poland hoping to follow Hungarian president Viktor Orban’s media plan. The purchase and sale agreement accepted by Czech Media Invest shows SFS Ventures acquiring 60% of Eurozet with Agora Group the remaining 40%. Agora Group has a five-year window to acquire the SFS Ventures investment.

Media regulator KRRiT has taken no public position as it continues to investigate the transaction. Early in the deliberations KRRiT reported concerns to the Ministry of Culture about “unwanted changes” resulting from “ownership transformations,” according to media news portal wirtualnemedia.pm (June 14). The transaction has also been referred to the Polish competition office (UOKIK). Eurozet operates Radio Zet, Chillizet, Antyradio and Meloradio.

Investor to consolidate news assets, including radio
partner not necessary

The joint venture operating Czech channel Radio Zet seems about to be dissolved. Media Bohemia communicated to regulator RRTV its interest in ceding its holding to Active Radio, reported investigative news portal hlidacipes.org (June 13). Radio Zet is an all-news radio station, principally serving Prague.

Active Radio is a subsidiary of Czech Media Invest, which last year acquired all central and eastern European radio broadcasting assets of Lagardère Active Radio. A 50% stake in Radio Zet was part of the transaction that included Europe 2, Frequence 1 and Radio Bonton in the Czech Republic. Lagardère Active Radio (Czech) was sole owner of Radio Zet until 2016 when a “strategic share” was transferred to Media Bohemia, owner of the Fajn Radio, Rock Radio, Hit Radio and Blanik Radio franchises. (See more about media in the Czech Republic here)

Radio Zet came about in 2013 when Lagardère Active Radio (Czech) acquired the concession held by BBC World Service for an English and Czech news radio station. It has continued as a news channel, sometimes with content from the BBC WS Czech service. Recent reports suggest Czech Media Invest intends to augment the stations news and information services through integration with another subsidiary, Czech News Center, built on its 2014 acquisition of the Czech publishing assets of Ringier Axel Springer.

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