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RTL acquires Sky Deutschland in the largest media deal since 2000

RTL Group will create streaming giant with 11.5 million subscribers to compete against global platforms.

Luis Rijo

• 5 min read
RTL and Sky logos with WOW streaming brand - major German media merger creates 11.5M subscriber base
RTL and Sky logos with WOW streaming brand - major German media merger creates 11.5M subscriber base

RTL Group announced on June 27, 2025 the acquisition of Sky Deutschland, marking the largest transaction in the company's 25-year history. The deal combines two of Germany's most recognizable media brands, creating a unified entertainment business with approximately 11.5 million paying subscribers across the DACH region.

According to the agreement, RTL Group will fully acquire Sky's businesses in Germany, Austria, and Switzerland, including customer relationships in Luxembourg, Liechtenstein, and South Tyrol on a cash-free and debt-free basis. The purchase price consists of €150 million in cash and a variable consideration linked to RTL Group's share price performance.

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Summary

Who: RTL Group is acquiring Sky Deutschland from Comcast's Sky Group. Key executives include Thomas Rabe (CEO of RTL Group), Dana Strong (Group CEO at Sky), Barny Mills (Sky Deutschland CEO), and Stephan Schmitter (CEO of RTL Deutschland).

What: A definitive agreement for RTL Group to fully acquire Sky's businesses in Germany, Austria, and Switzerland, creating a combined entity with 11.5 million paying subscribers and projected annual synergies of €250 million.

When: The announcement was made on June 27, 2025, with regulatory approvals expected in 2026.

Where: The deal covers the DACH region (Germany, Austria, Switzerland) plus customer relationships in Luxembourg, Liechtenstein, and South Tyrol. RTL Deutschland will remain headquartered in Cologne and Sky Deutschland in Munich.

Why: The acquisition enables RTL Group to compete more effectively against global streaming platforms and tech giants by combining premium sports content with entertainment brands, diversifying revenue streams, and achieving significant operational synergies.

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The variable consideration can be triggered by Comcast, Sky's parent company, at any time within five years after closing, provided that RTL Group's share price exceeds €41. The variable consideration is capped at €70 per share or €377 million. RTL Group has the right to settle the variable consideration in shares, cash, or a combination of both.

Sky Deutschland CEO Barny Mills will continue to lead the Sky Deutschland business until the transaction is completed. "This marks an exciting new chapter for us, setting us up for future success," Mills stated. The Sky Deutschland CEO thanked the team "who have delivered the turnaround of our business, that has an all-time high number of customers and is on track for profitability this year."

Thomas Rabe, CEO of RTL Group, described the combination as "transformational for RTL Group." The deal "will bring together two of the most powerful entertainment and sports brands in Europe and create a unique video proposition across free TV, pay TV and streaming," according to Rabe.

The transaction combines Sky's premium sports rights – including Bundesliga, DFB-Pokal, Premier League and Formula 1 – with RTL's leading entertainment and news brands across RTL+, free-to-air and pay TV. It also unites the fastest growing streaming offers in the German market, RTL+ and WOW.

Dana Strong, Group CEO at Sky, emphasized that "Sky Deutschland has made significant progress over the past three years, delivering strong operational performance and reaching a record number of customers." The business is on track to achieve EBITDA break-even, reflecting the success of their turnaround plan.

The combined business will offer a broader and more compelling German-language content portfolio for consumers across the DACH region. Viewers will benefit from expanded access to premium live sports, entertainment and news across RTL+, Sky, WOW and RTL's free-to-air channels.

The transaction is expected to generate €250 million in annual synergies within three years, mostly cost synergies across all categories. The pro-forma revenue for 2024 of the combined company was €4.6 billion, with approximately 45 percent of the total revenue coming from subscription-based revenue.

RTL Group's pro-forma revenue for 2024 was €8.2 billion, more than 30 percent higher than RTL Group's reported consolidated revenue for 2024 of €6.25 billion. This represents a significant diversification of RTL Group's revenue streams across subscription, distribution and advertising.

Under a separate trademark license agreement, RTL will have the right to use the Sky brand in the DACH region, Luxembourg, Liechtenstein and South Tyrol. RTL will acquire Sky Deutschland's streaming brand "WOW" as part of the transaction.

Stephan Schmitter will stay in his current role as CEO of RTL Deutschland until closing of the transaction and then lead the combined company. RTL Deutschland will remain headquartered in Cologne and Sky Deutschland in Munich.

The two businesses will continue to operate independently until regulatory approvals are obtained, which are expected in 2026. The transaction, which has been approved by the Board of Directors of RTL Group, is subject to regulatory approvals.

With 11.5 million paying subscribers in the DACH region, the new RTL remains smaller than Amazon Prime and Netflix, which count 16.5 million and 16.3 million subscribers respectively, according to Dataxis. For the RTL Group, growing rapidly is urgent in order to compete effectively against strong American players in online advertising such as Google, Meta, and now in Connected TV, against Netflix, Disney+, Prime, and YouTube.

This acquisition comes at a critical time for European media companies. Traditional TV loses ground to streaming in Germany, with 77% of Germans now using video streaming services weekly. The German digital advertising market has also shown remarkable growth, with European digital ads hitting €118.9 billion with 16% growth in 2024.

The deal strengthens RTL's position in the streaming wars. RTL+ expands reach through partnerships, having recently made its streaming service available on Sky Stream's IPTV platform. The company also extended its streaming partnership with Deutsche Telekom until 2030, integrating RTL+ Premium into MagentaTV plans.

European media consolidation has accelerated as companies seek scale to compete with global tech giants. ProSiebenSat.1 and RTL joined forces in adtech, combining their respective adtech companies Virtual Minds and Smartclip to challenge US dominance in the advertising technology space.

The streaming market has experienced unprecedented growth, with programmatic advertising growth reaching 72% as marketers shift budgets toward Connected TV. This trend reflects broader changes in media consumption, with streaming platforms capturing an increasing share of viewing time.

For the marketing community, this acquisition represents a significant shift in the DACH media landscape. The combined entity will offer advertisers a more comprehensive reach across multiple platforms and formats. This matters particularly given the surge in retail media spending, which has outpaced broader advertising market growth by nearly four times.

The deal also reflects the urgent need for European media companies to achieve scale. With global streaming giants like Netflix, Amazon Prime, and Disney+ dominating subscriber numbers, regional players must consolidate to remain competitive. The RTL-Sky combination creates a formidable challenger in the German-speaking market, though it still faces an uphill battle against established international competitors.

PJT Partners served as advisor to Comcast on this transaction. The acquisition represents RTL Group's commitment to building a future-ready entertainment business capable of competing with global streamers while maintaining its strong position in traditional broadcasting.

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