Private Equity Firm KKR Acquires Small Stake in ProSieben

New York-based private equity firm KKR has acquired a 5.2% stake in ProSiebenSat.1, the parent company of a handful of dating offerings including eharmony.

KKR wanted to get involved with the German broadcaster as it believed it was undervalued by the market and sees the investment as a purely financial one. News of the acquisition saw ProSieben’s share price increase by approximately 15%.

The value of the deal is yet to be disclosed, but this is the second time that KKR has picked up a part of the company. In 2014 it sold a 16.6% stake, which it held alongside fellow private equity firm Permira, for €1.3 billion.

A spokesperson told Reuters: “We have decided to reinvest into ProSiebenSat.1 based on our belief that markets are currently undervaluing the company. We view this as a financial investment.”

At the beginning of March, ProSieben agreed to takeover The Meet Group in a deal that is estimated to be worth $500 million. 

The acquisition is due to be completed through its subsidiary NuCom Group, which is also held with General Atalantic. However, it’s understood that ProSieben is planning to part ways with NuCom Group and focus exclusively on entertainment and media.

Prosieben lost more than 40% of its stock market value after the news broke that it was planning to buy the dating umbrella.

There is also opposition from some of the The Meet Group’s current investors. They’ve moved to file a lawsuit which alleges board members have withheld information in order to profit themselves.

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