D-Smart looks to buy biggest rival Digitürk
ISTANBULBroadcasting platform D-Smart has said it eyed acquiring its biggest rival Digiturk, one of 12 companies of Çukurova group that was recently seized by Turkey’s state-run Savings Deposit and Insurance Fund (TMSF), daily Hürriyet reported. There are other local and foreign companies interested in Digiturk, the sources told Reuters.
D-Smart wants to buy Digiturk in order to create a global brand in Turkey, to protect the national wealth and keep foreign exchange in the country, said CEO Ali Güven.
“Digiturk should increase in value by developing more in Turkey. Digiturk is at the position of national wealth. From this point of view, the merger of the two companies in the same sectors will reduce prices, raise quality and lead to using one decoder. Also, an expenditure for foreign contents worth hundreds of millions of dollars will stay in the country thanks to this merger,” said Güven. In case of a merger, they will have around 5 million subscribers that will help them become globally established, he added, also noting that the Competition Board would have the final word on buying Digiturk, according to daily Hürriyet.
However, Türk Telekom, Doğan Holding and Doğuş Group are among potential buyers for digital pay-TV operator Digiturk, in a deal seen worth up to $1 billion, banking sources close to the matter told Reuters.News Corp and Liberty Global may also be interested in Digiturk, they said.
Digiturk’s pay-TV market share was 61.73 percent and D-Smart’s 38.27 percent in the second quarter of 2012 when 4.1 million subscribers produced revenues of $26.80 million, up 52 percent from the first quarter, according to the latest data from telecoms regulator BTK.