Murdoch's Bulgarian TV Station Sale Faces Obstacle

bTV sale is the third large deal on the Bulgarian TV market for the last two years after the US Central European Media Enterprises bought the cable TV2 and Ring for EUR 110 M, and the Swedish MTG Group acquired Nova TV for EUR 620 M. File photo

Cabletel, one of Bulgaria's largest cable TV operators, is putting a spoke in the wheel of the sale of Bulgaria's first national private television bTV to CEM, reports say.

The conflict dates back from a few months ago and concerns Cabletel refusal to air bTV recently launched theme channels without an increase in the subscription fees.

The media wants its two theme channels – bTV Cinema and bTV Comedy – to be aired free of charge for the subscribes, but the cable operator says this is impossible due to the high price that bTV wants to charge.

According to reports the price in question is seven-digit for a period of two years.

Cabletel plans to approach the anti-monopoly watchdog, the Commission for Competition Protection, in a step that may delay the finalization of bTV sale deal.

Central European Media Enterprises signed a deal for the acquisition of Bulgaria's first national private television bTV, wholly owned by Rupert Murdoch's News Corp, on February 18.

Under the terms of the agreement, CME will pay USD 400 M in cash for 100% of the terrestrial free-to-air TV channel, bTV. It will also take control of the two genre channels, bTV Comedy and bTV Cinema, along with News Corporation’s 74-per-cent interest in Radio Company C.J which operates five radio stations.

This sale completes News Corporation's programme of exiting its substantial Eastern European free-to-air broadcasting businesses, the company said.

The transaction is subject to regulatory approval by the Bulgarian Commission for the Protection of Competition and other customary closing conditions.

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