Central European Media Enterprises Ltd. ("CME") (Nasdaq/Prague Stock Exchange: CETV) announced the purchase of an 80% interest in two Bulgarian television channels, TV2 and Ring TV, for $172 million (110 million Euros).
The purchase of TV2, a national terrestrial network launched in November 2007, and Ring TV, a sports cable channel, from Top Tone Media Holdings Limited an 80% interest in two Bulgarian television TV2 channel, a national terrestrial network launched in November 2007, and Ring TV, is expected to be completed by August 11.
In a prepared statement, Michael Garin, CME's Chief Executive Officer, said, "Our entrance into the Bulgarian market represents the first new CME territory in three yearst."
Adrian Sarbu, CME's Chief Operating Officer, added, "The Bulgarian TV market is dominated by a few key players and I firmly believe in CME's ability to achieve market leadership within the next 5 years. This target is achievable through the development of local programming, use of synergies with our Romanian operations and leveraging our existing proven skills and knowledge base."
The Bulgarian net television advertising market was approximately 108 million Euros in 2007 and is expected to have an annual growth rate of 20% through 2012.
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