“Turkish conglom Dogan Media Group has sold entertainment network Star TV to a rival for US$327m.
Dogus Yayin Holdings will take on 99.9% of the channel, which broadcasts entertainment formats, dramas and sport and was Turkey’s first private TV network, subject to local competition clearance.
It will pay Dogan subsidiary Isil Television Broadcasting an initial US$151m, with the outstanding US$176m paid off in instalments over the next two years, according to a filing to the Istanbul Stock Exchange this week.
Dogan originally bought Star for US$306.5m six years ago at a keenly contested auction after previous owner Uzan Media folded in 2003 under the weight of its US$6bn debts.
But it has recently been struggling to cover a multibillion-dollar bill relating to fines, taxes and interest imposed by government, which some commentators have claimed could be politically motivated.
It was forced to sell off Star after failing to comply with new laws prohibiting any one media firm from controlling more than 30% of the advertising market.
Others Dogan assets, including daily newspapers, have already been shed. Kanal D was also on the block but reports today suggest the Star deal may end the sales process.
Meanwhile, Dogus rivals Dogan in terms of scale but its 123 companies are spread across the media, finance, automotive, tourism, real estate, construction and energy industries.
Media arm Dogus Media Group owns news net NTV and has struck partnerships with National Geographic, CNBC and Condé Nast and has more than 1,100 employees.”
Source : C21 media