Premiere acquires Creation Club
Written by Jörn Krieger
German pay-TV operator Premiere has acquired the creative agency Creation Club from media company Constantin Medien, with effect from July 1.
Both companies agreed not to disclose the purchase price, which will be paid over 5 years until 2013 and is secured through a bank guarantee. With the acquisition, which still has to be approved by the federal cartel office, Creation Club will become a 100% subsidiary of Premiere.
“Our new Sky entertainment service will benefit significantly from the acquisition of Creation Club and bringing in-house the creative talent and production capability to further strengthen our on-air quality,” said Premiere CEO Mark Williams.
According to Constantin Medien, the sale was concluded at Premiere’s request. A decisive factor in the decision for the move was that Premiere, as with other Sky companies, plans in the mid-term to assign the areas of promotion, art direction, formats and advertising in-house. As Creation Club generates a major portion of its sales on the basis of a framework agreement with Premiere and this agreement expires in 2012, the company says it would have to count on substantial sales losses from the expiration of the agreement, which could not otherwise be compensated.
With the move, Premiere has made its first acquisition since the ailing broadcaster shed numerous assets over previous months which did not belong to its core business of pay-TV, including free-to-air channel GIGA, internet portal Spox.com and online shop Home of Hardware.