TV4 and Telenor Strengthen Ties with C More Entertainment Deal

The TV4 Group and Telenor Group today announced that they have entered a co-ownership agreement for C More Entertainment, which runs its premium TV operations under the Canal+ brand. Telenor will acquire 35 per cent of C More Entertainment through a share purchase and a directed new share issue of the company's shares. Telenor has paid a cash consideration of SEK 787 million. In addition certain sports rights owned by Telenor, for example SAS Ligaen and FIFA World Cup 2010 in Denmark, have been sublicensed to C More Entertainment. The Nordic co-ownership provides Canal+ with long-term access to important content for its TV subscribers. Canal+ customers will be offered an increased selection of top quality sports, films and series.

The TV4 Group and Telenor have collaborated closely since TV4 Group's acquisition of C More Entertainment, which today's deal will enhance. The co-ownership agreement opens the door for new media and telecom ventures and business opportunities.

"We are very pleased to present this deal. Telenor and TV4 Group complement each other well and, together, we are a perfect match to develop Canal+ further" says Erik Nord, CEO of Telenor Media and Content Services.  

For Canal+ subscribers, positive changes will be felt immediately through the launch of several projects. For example, Canal+ will launch several new premium channels in the Nordic region. Canal+ will also expand its rights portfolio with new sports rights. In addition Canal+ has long-term exclusive agreements with six Hollywood studios. The launch of new TV channels in Norway and Denmark is also planned.

"Canal+ has developed very well since we acquired the company in 2008, and reported its best-ever results last year," says Jan Scherman, CEO of the TV4 Group. "We are now creating even better opportunities for Canal+ to maintain its position as the Nordic region's leading TV channel in the premium segment, and are also enlarging our offer."

The Canal+ operational structure remains unchanged and the company's business model will continue to be based on an operator-independent strategy. Canal+ will also maintain its current objective of offering premium services to existing and new subscribers in the Nordic region. The intensification of the Canal+ collaboration between the TV4 Group and the Telenor Group therefore means that all three companies will continue to run their operations with the same market orientation toward other partners as previously. The co-ownership agreement will not alter the control structure of C More Entertainment. TV4 Group will remain the company's majority owner.