Sky Advances After Deutsche Telekom TV Linkup: Frankfurt MoverKenneth Wong
Sky Deutschland AG, the pay-TV operator partly owned by News Corp., jumped to the highest level in more than three years in Frankfurt after agreeing to sell subscriptions to Deutsche Telekom AG’s television customers.
Sky rose as much as 2.2 percent to 4.45 euros, the highest intraday price since September 2009 and the biggest advance today in Germany’s DAX Mid-Cap Index. Starting in summer 2013, Sky programs including Germany’s Bundesliga soccer matches and UEFA Champions League games, as well as Sky Welt and Sky Film, will be available to Bonn-based Deutsche Telekom’s Entertain IPTV clients, the companies said in a statement today.
In April, Sky signed a four-year agreement, paying 485.7 million euros ($633 million) annually, to strengthen its hold on broadcast rights for Bundesliga soccer matches, edging Deutsche Telekom out of its license for Internet-based broadcasts. Today’s agreement allows Sky, with more than 3 million customers in Germany and Austria, to access the former phone monopoly’s TV client base. Financial details weren’t disclosed.
Sky shares almost tripled in 2012, making them the best performer in the 27-company Bloomberg Europe 500 Media Index. They traded 1.2 percent higher at 4.41 euros as of 9:43 a.m. in Frankfurt. Deutsche Telekom added 0.3 percent to 8.78 euros.