The Bermuda-registered company Central European Media Enterprises (CME) has agreed to buy the full-stake in the country’s largest TV broadcaster bTV, owned by global media group News Corporation through its local subsidiary, the media company Balkan News Corporation. The value of the deal is set at USD 400mn. A month ago, the price was expected at EUR 500mn, according to an unnamed source of Reuters , who claimed to be close to the negotiations. CME will take control also over the two specialised TV channels bTV Comedy and bTV Cinema and the 74% stake of News Corporation in the radio company C.J. operating five radio stations in the country. The acquisition is expected to be finalised in six months following the approval of the antitrust commission.

The sale is the last stage of the strategy of News Corporation to exit the terrestrial TV and radio broadcasting in East Europe . In 2008, News Corporation announced intentions to sell its local assets managed by Balkan News Corporation (bTV and several smaller TV channels in Bulgaria and neighbouring Serbia and Turkey ) and hired the financial group JPMorgan Chase as an adviser. News Corporation was expecting to cash at least EUR 1bn from the planned sale. Balkan News Corporation improved its net profit by 6% to BGN 62.4mn (EUR 31.9mn) in 2008 on revenues increase of 5% to BGN 157.6mn. bTV controlled more than 38% of the local market as of end-December

CME is a leading TV operator in Central and Eastern Europe with operations in Croatia , the Czech Public, Slovakia , Slovenia , Romania , and Ukraine . In 2008, it acquired the nationally broadcasted TV2 channel (now Pro.BG) and the sports cable channel Ring TV (Ring.BG) for USD 172mn. In connection with this deal, the group announced it will acquire from Top Tone Holdings its 20% interest in Pro.BG business in consideration of a 6% interest in a newly created subsidiary that will hold the bTV business and Pro.BG businesses and the termination of the existing agreements in respect of the Pro.BG business. The closing is expected to be simultaneous with the completion of the acquisition of the bTV businesses, the press release reads.